Brazil Tests Energy Imports from Venezuela, Aims to Cut Costs

Brazil began testing electricity imports from Venezuela on Monday, January 14, 2025. The National Electric System Operator (ONS) oversees the Brazilian side of the tests.

Bolt Energy received government authorization to conduct the import. The evaluation will last 96 hours on the 230 kV Boa Vista – Santa Elena de Uairén transmission line. ONS estimates potential imports of up to 15 MW at R$1,096.11 per Megawatt-hour.

This could save up to R$500,000 (US$100,000) daily compared to current thermoelectric generation in Roraima. Venezuelan electricity costs less than Roraima’s thermal power plants that rely on subsidized fuel.

Roraima stands as Brazil’s only state disconnected from the national power grid. It depends on local thermal generation, which drives up energy costs nationwide. The Fuel Consumption Account subsidizes Roraima’s power, adding charges to all Brazilian electricity bills.

The Lula administration has worked to restart energy trade with Venezuela for over a year. Former President Bolsonaro halted imports in 2019 amid worsening bilateral relations. Resuming energy cooperation signals improving ties between the two countries.

If successful, commercial imports could begin soon, pending approval from Brazil’s electricity regulator ANEEL. This aligns with Brazil’s strategy to diversify energy sources and boost efficiency.

However, long-term plans still include connecting Roraima to the national grid. The tests mark a shift in regional energy dynamics and bilateral relations. They underscore the importance of international cooperation in addressing energy challenges.

Brazil aims to enhance energy security while potentially lowering costs for consumers. Critics argue the move increases dependence on a politically unstable neighbor.

Supporters counter that it provides a cost-effective solution to Roraima’s energy needs. The outcome of these tests may shape Brazil’s energy policy and regional relationships in the coming years.