News operational measure at the Jirau hydropower plant boosts Brazil-Bolivia energy security
Located on the Madeira River in the state of Rondônia, the Jirau Hydropower Plant was originally designed to operate at variable water levels, seasonally adjusted for the hydric seasonality of the region. However, with the signature of a Memorandum of Understanding between the Brazilian and Bolivian governments in July 2024, the plant is now permitted to continually operate at a level of 90 masl (meters above sea level) during the entire dry season.
With this agreement, the Plant’s turbines now operate on a more optimized basis, producing increased energy with the same volume of water and structure, expanding output by up to 250 average MW, thus increasing security of energy supply in Brazil, particularly in the region of the states of Acre and Rondônia.
Regional and Sustainable Benefits
In addition to the increase in energy generation, operations at the 90 masl level bring benefits to fluvial navigation on the Madeira River, more especially during periods of drought such as has been the case in recent years.
The plant’s optimized operation generates a greater tax take through the Financial Compensation for Use of Water Resources (CFURH) to the benefit of both the city of Porto Velho, state of Rondônia, and also the Federal Government, in addition to compensating Bolivia with part of the additional energy generated. Currently, the northern region of Bolivia is largely supplied by diesel-fired thermoelectric plants with high operational costs and environmental impacts. Thanks to the new agreement, this region, some 400 km from Jirau, will have access to clean and sustainable energy.
Brazil-Bolivia and the Future of Energy in Amazonia
Says Jirau Energia’s CEO, Edson Silva, the operation at 90 masl represents a historic milestone in Brazil-Bolivia relations, as it brings significant benefits in terms of energy to both countries, as well as underscoring the commitment to the energy transition in the Amazon region. “In addition to energy gains, this operation improves river navigation, helps mitigate the effects of drought and increases the collection of Financial Compensation for the Use of Water Resources revenues, benefiting local communities as well as the Federal Government. My hope is that this example of regional energy integration may serve as an example for more such cases in South America”
About Jirau Hydropower Plant
Jirau Hydropower Plant is a Special Purpose Vehicle (SPE), having as its shareholders the companies of ENGIE (40%), Eletrobrás (40%) and Mizha Participações S.A. (20%), a subsidiary of Mitsui & CO. LTD. With an installed capacity of 3,750 MW, Jirau is the fourth largest hydropower plant in Brazil and went into operation in October 2013. At an investment worth R$ 20 billion and with 50 bulb-type turbine units, the plant is able to meet 2.6% of domestic demand for electric power, generating energy which is both clean and sustainable.
The plant performs an important role in the region with socio-environmental investments of over R$ 1.2 billion and a contribution of R$ 700 million to the Financial Compensation for Use of Water Resources. Today, the plant has a headcount of approximately 1,000 including out-sourced employees.
In 2023, Jirau was the first plant in Latin America to be awarded the International Hydropower Association’s (IHA) gold certification, underscoring its commitment to sustainability.
Jirau Hydropower Plant is testimony that it is possible to implement responsible infrastructure in the Amazon region.
ABOUT ENGIE
ENGIE is a global reference in low-carbon energy and services. With its 97,000 employees, its customers, partners and stakeholders, the Group is committed to accelerate the transition towards a carbon-neutral world, through reduced energy consumption and more environmentally-friendly solutions. Inspired by its purpose (“raison d’être”), ENGIE reconciles economic performance with a positive impact on people and the planet, building on its key businesses (gas, renewable energy, services) to offer competitive solutions to its customers. Turnover in 2022: 82.6 billion Euros.
In Brazil, ENGIE, leader in 100% renewable power generation in the country, operates in generation, commercialization and transmission of electric power, gas transport and energy solutions. The Company
has in the country an installed capacity of 12,5 GW, originated from renewable sources and with low GHG emissions, such as hydro, solar and biomass power plants, and windfarms.
With the acquisition of Transportadora Associada de Gás – TAG, ENGIE now also owns the largest natural gas transportation network in the country, at 4,500 km and transecting 10 states and 191 cities.
The Group has a complete portfolio of integrated solutions focused on reducing costs and improving the infrastructure for companies and cities, such as energy efficiency, public lighting, energy monitoring and management.
With 2,800 employees, ENGIE’s turnover in Brazil in 2023 was of R$ 11.7 billion. ENGIE trades on the B3 through its energy generation and trading company, ENGIE Brasil Energia, under the ticker EGIE3. In addition to being a B3 Novo Mercado component, the Company is one of the very few companies that have been listed in the Business Sustainability Index since its creation in 2005. In 2021, ENGIE Brasil Energia was included in the Carbon-Efficient Index (ICO2), made up of IBrX 100 companies that are most transparent in terms of GHG emissions reporting and how they are preparing for a low-carbon economy.
The company also received in May 2024 the certification Great Place to Work, a recognition which validates the continuous commitment of the company to create a positive and inclusive work environment for all.
The Group is listed on the Paris and Brussels stock exchanges (ENGI) and is represented in the main financial indices (CAC 40, Euronext 100, FTSE Euro 100, MSCI Europe) and non-financial indices (DJSI World, Euronext Vigeo Eiris – Europe 120/France 20, MSCI EMU ESG screened, MSCI EUROPE ESG Universal Select, Stoxx Europe 600 ESG-X).