Impact of daylight saving time on consumption will be decreasing
The National System Operator (ONS) has defended the adoption of summer time in Brazil with the aim of generating a reduction in energy demand during peak hours. In a report delivered to the Ministry of Mines and Energy (MME), the ONS reinforced that the impact on consumption will decrease month by month.
In October, the estimated drop is 2.9%, while in November and December, this reduction decreases to 2.5% and 1.4%, respectively. In January, there was a slight increase of 0.1%, with a further decrease in February, in the order of 0.2%.
The technical report analyzes the scenario for the period from 2024 to 2028, demonstrating that daylight saving time helps to smooth the peak demand, especially at the end of the day, when solar and wind energy generation is already lower. This reduces the need to activate thermoelectric plants, which have a higher operating cost. However, the study also points out that, in some months and subsystems, such as in the south of the country, demand may increase, especially in the summer months.
The projected savings from reduced use of thermoelectric plants between October and February 2025 is R$244 million to R$356 million, depending on the levels of the hydroelectric reservoirs. Furthermore, from 2026 onwards, the adoption of summer time could generate additional savings estimated at R$1.8 billion, related to the reduction in the need to contract reserve capacity for thermoelectric plants.
According to the ONS, reducing dependence on thermoelectric plants can minimize costs for consumers, given that the impact of the red tariff flag increases the cost of electricity due to the activation of thermoelectric plants.
Government wants summer time this year
The government has been studying the resumption of daylight saving time as a strategy to overcome the extreme drought in the country. With the lack of rain, there is an effort to save hydroelectric reservoirs, which leads to greater activation of thermoelectric plants, which are more expensive.
The decision whether or not to resume summer time must be made by President Luiz Inácio Lula da Silva (PT). The Minister of Mines and Energy, Alexandre Silveira, said that the decision on the return of summer time will be taken in ten days. The government’s expectation is that daylight saving time will come into force after the second round of elections, at the end of October.
Daylight saving time was abolished in 2019, in the first year of the administration of former president Jair Bolsonaro (PL), after concluding that the advance time system does not reduce energy consumption. On the contrary, it increases.
According to a technical note from the Ministry of Mines and Energy at the time, the 2018/2019 summer time resulted in an increase in the Brazilian electricity load of around 0.7%.
