Rio de Janeiro – Onshore natural gas exploration in Brazil, which is scheduled for tender in the 12th tendering round next October, should be mostly destined for power generation sathe secretary of Energy Development to the Ministry of Mines and Energy, Altino Ventura Filho, who attended the seminar Energy Efficiency: projects, rulings and investment, this Friday (19th) at the American Chamber of Commerce in Rio de Janeiro.
“It is the natural solution, because the electric system needs a foundation of thermal power generation driven by low-cost fuel. These plants are a requirement of the Brazilian systems, and gas-fired is a cleaner generation method. It creates favourable environmental conditions, and so long as it is competitive, which we believe to be the case, it is a natural solution,” said Altino.
The more competitive gas to which the secretary alluded is the type used by thermoelectric plants located by gas wells, which eliminates the need for gas pipelines. This makes the gas cheaper.
“Any other option would call for a pipeline, such as in Bolivia. Within three to five years, prior to 2020, we may see gas supplied at competitive prices for electric energy production, because the plants will be next to gas wells,” said Altino.
The gas-fired thermoelectric plants will be an alternative to mineral coal-fired, which is more pollutant and is being used complementarily. Altino forecasts that thermoelectric plants, including nuclear, should play a stronger role in Brazil’s energy system starting in 2025, by which year the potential of hydroelectric plant will be closer to depletion.
The secretary said the Brazilian hydroelectric potential is 260,000 MW, the world’s fourth largest, but 80,000 MW are not being accounted for in investment plans because they are located in environmental and Indian reserves.
*Translated by Gabriel Pomerancblum