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Brazil Procurement News Notice - 79143


Procurement News Notice

PNN 79143
Work Detail Brazilian experts estimate that solar energy can generate power for up to two extra hours, benefiting regions with higher radiation and requiring less from hydroelectric and thermoelectric plants, which also impacts on a cost reduction for the consumer. The possible return of daylight saving time in Brazil is being analyzed by the Brazilian government as a strategy to face the challenges of the electricity sector, especially during peak consumption hours and in the face of an intense and prolonged drought. In this context, solar energy generation can be an argument in favor of changing the time. According to a recent study by the National Electric System Operator (ONS), the measure could reduce electricity demand by up to 2.9% and postpone peak consumption by up to two hours, which would relieve pressure on the grid. Over the past five years, the Brazilian energy landscape has changed significantly with the expansion of solar energy. In 2019, the installed capacity of solar energy was 5 GW; in August 2024, this figure reached 47 GW, representing almost 20% of the countrys electricity matrix. This growth makes the impact of daylight saving time more relevant than in previous years, as this source can help meet demand for longer, avoiding the activation of thermal plants, which are more expensive and harmful to the environment. Brazils severe drought, the worst in 70 years, has reduced the capacity of hydroelectric plants, which account for 46% of the countrys power generation capacity, including distributed generation. To compensate for this reduction, the system has increasingly turned to thermal plants, the use of which increases energy costs and increases greenhouse gas emissions. Currently, the peak demand time in Brazil is between 7 and 8 p.m., followed by a second peak between 2 and 3 p.m., driven by industries, according to Pedro Moro, a specialist in market studies and energy prices at Thymos Energia. He believes that the change to daylight saving time is no longer about changing the way of consumption as in the past, but about adjusting generation. “Solar energy will generate an extra hour each day, and will waste one less hour at the beginning of the day, when it is not so necessary. For a consumer of distributed generation it would be a benefit because they would have generation at the peak. And in the case of flow reversal, it is also positive since it reduces the difference between residential consumption and solar generation. The possible return of daylight saving time is beneficial for the electricity sector in general, including the centralized sector,” says the executive. In terms of costs, although the return of daylight saving time will not directly reduce the value of tariffs for the consumer, it can avoid blackouts and reduce the need to activate thermal power plants, saving around 400 million reais ($71.5 million) in operating costs. These savings can relieve the electrical system at critical times, especially during months with the highest risk of power outages. “We see a scenario for October and November that is not favourable for rainfall, especially for the Central-West and South-East regions. We should see a gradual improvement from December onwards, with a possible occurrence of La Niña, the weather event that cools the waters of the Equatorial Pacific Ocean. It is necessary to take advantage of generation for the next two months, since in addition to the upcoming humid weather having the possibility of damaging solar radiation, there are other unpredictable factors such as smoke caused by fires. In August, smoke caused a 20% reduction in solar irradiation, damaging generation,” Tempo OK senior meteorologist Caetano Mancini told pv magazine . Mancini also says that, from both a meteorological and energy perspective, daylight saving time makes sense. According to the meteorologist, distributed generation helps to avoid putting pressure on the reservoir or activating thermoelectric plants, which is essential in a dry climate scenario. “Today, solar energy is a much more representative energy matrix than in 2019, when daylight saving time was abolished. This represents an enormous contribution to the system, which could have up to 3 more hours of sunshine and the days will get darker later,” he says. For Fred Menezes, CEO of Armor Energia, an energy trading company and business center focused on the Free Market, the cost of energy is also continuing to rise due to the drought, with the Differential Settlement Price (PLD) reaching 500 reais in October. “The current scenario is difficult to predict, it only takes rain during the rainy season for there to be no talk of an energy crisis. But until this happens, prices will continue to rise,” he says. Menezes reinforces the importance of solar energy for the interconnected system outside of daylight saving time, and with the return of the measure, its impact would be even greater: “If we did not have solar energy to withstand these moments of high temperature, we would have to supply this demand with expensive reservoirs and thermal plants. Speaking of daylight saving time, the benefit of solar energy is even greater. It is able to withstand the afternoon rush hour, and when the sun begins to set is precisely when peoples activity begins to decrease. Daylight saving time is, certainly, a mechanism that generates comfort for the interconnected system in this time of high temperatures and high energy demand,” guarantees the executive. The debate on daylight saving time is no longer a discussion about sleep time, but rather a respite for the electricity sector, as well as making the most of solar energy generation. Its return, combined with solar energy, could strengthen the systems resilience in the face of an increasingly challenging and unpredictable climate and energy scenario. The Brazilian Association of Photovoltaic Solar Energy (Absolar) told pv magazine that it “recognizes that daylight saving time can help to make better use of solar energy, a clean, competitive and renewable source, by shifting part of the electricity consumption to times of greater solar incidence. This can reduce the pressure on the electric power system at times of greatest demand, bringing benefits to the sector and the population. However, we understand that it is essential that the government and the competent authorities carefully analyze the impacts of this measure, taking into account accurate data on energy savings and the real effect on the electric power system. The decision must be based on clear studies, which evaluate both the benefits and the challenges.” The association has also made itself available to the government to collaborate in the construction of solutions that contribute to the sustainable growth of solar energy in Brazil.
Country Brazil , South America
Industry Energy & Power
Entry Date 10 Oct 2024
Source https://www.pv-magazine-latam.com/2024/10/09/la-energia-solar-se-puede-combinar-con-el-horario-de-verano-para-superar-los-desafios-del-sector-electrico/

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