Hydro power plant reservoirs in Southeast Brazil are at their lowest level since 2014 due to below average rainfall for the rainy season, but authorities and experts see no need for electricity rationing next year.
"There is no risk to supplies in 2020," the national grid operator ONS told Reuters in a statement on Thursday.
The reservoirs, the country's largest, are lower than during the 2001 energy crisis that forced Brazil to widely ration supplies. On Wednesday, they were at 20 per cent of storage capacity, compared to 26.5 per cent and 18.6 per cent in the same period of 2018 and 2014, respectively, according to ONS.
However, Brazil's can fall back on its considerable thermoelectric generation capacity that has been untapped this year because demand has not grown in the country's slow economy recovery.
Electricity rates could rise if the drought persists and more so if thermoelectric power plants have to be started up.
"I see no risk of shortages. The system is pretty secure and we have sufficient generation capacity to hold out," said Ricardo Lima, partner and director at consultancy Tempo Presente and former member of the board at the Power Commercialization Chamber (CCEE).
"There will be no shortage of energy, even if the economy grows more than 2.5 per cent next year," the Mines and Energy Ministry said in a statement this week.
