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High water storage levels at hydropower reservoirs have led Brazilian grid operator ONS and chamber of electric energy commercialization CCEE to launch a plan to export power to Argentina and Uruguay.
Water must be released when hydropower reservoir grow too close to overflowing, creating a cost in lost power generating potential. The decision to sell the extra hydro capacity to Argentina and Uruguay will replace solution currently used in such instances, which was an equal exchange of power generation between the countries without any profit made over the exported power.
Transactions within the plan are not regulated by any government agency, so suppliers and consumers are free to negotiate. That means power generators can supply their surplus daily, which would otherwise be lost. Buyers interested in the surplus energy will need to offer bids above the Brazilian spot power price (PLD). argusmedia.com
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