Brazil orders rolling blackouts as demand spikes in record heat

SAO PAULO (Reuters) – Rolling blackouts swept across parts of Brazil yesterday as the grid operator ordered select power cuts to avoid a larger crisis, drawing attention to a fragile electric system that is buckling under the strains of record-breaking heat and dryness.

Grid operator ONS said it orchestrated 2,200 megawatts of controlled outages in eight states as the hottest day of the year in Sao Paulo, where the temperature hit 36.5 Celsius (97.7 Fahrenheit), and other southeastern cities led to surging demand from air conditioners and other power-hungry appliances.

Eletronuclear, a unit of state-run power company Eletrobras , said nuclear reactor Angra I powered down automatically at 2:49 p.m. local time (1649 GMT) due to a drop in frequency on the national grid. The company said there were no risks to workers or the environment due to the stoppage.

Brazilian officials have repeatedly denied the need for energy rationing, even as the driest spell in more than 80 years drains hydropower reserves and forces the use of more costly thermal plants. The drought has also raised the specter of water rationing in Sao Paulo, Brazil’s business hub and South America’s largest metropolitan area.

Shares of electric companies tumbled on the Sao Paulo stock exchange, dragging an industry index nearly 5 percent lower as news of the power cuts spread. CPFL Energia SA fell more than 7 percent, while AES Eletropaulo, Light SA and Copel each lost around 6 percent.