Cutting Down the Hydropower Plants: How the Amazon Deforestation is Jeopardizing Electricity Generation in Brazil

This report by the Climate Policy Initiative/Pontifical Catholic University of Rio de Janeiro (CPI/PUC-RIO) analyzes how deforestation in the Amazon rainforest reduces rainfall patterns, thereby jeopardizing hydroelectric power generation in Brazil. Through case studies of the Teles Pires HPP and plants in the Paraná Basin, the study demonstrates that the loss of forest vegetation reduces the moisture carried by 'flying rivers,' leading to lower river volumes and significant revenue losses for energy producers, even for plants located thousands of kilometers from the Amazon biome.

• Deforestation in the Amazon negatively impacts Brazil's electricity generation capacity and revenue, affecting hydropower plants (HPPs) both within the Amazon biome and those located thousands of kilometers away.
• The 'flying rivers' phenomenon—moisture-laden air currents from the Amazon—is critical for rainfall patterns that supply water for energy production; 17 of the 20 highest-capacity hydroelectric plants in Brazil are exposed to this mechanism.
• A case study of the Teles Pires HPP, located in the Amazon region, found that deforestation between 1985 and 2020 reduced monthly electricity generation by 2.5% to 10%, resulting in an average annual revenue loss of USD 21 million.
• Deforestation in the Amazon also impacts HPPs in the Paraná Basin (Salto, Salto do Rio Verdinho, and São Domingos), causing a generation loss of approximately 3%. For the Salto HPP, this corresponds to a potential 10% loss of annual profit for its controlling company, CTG Brasil S.A.
• The study identifies specific land tenure categories that are most influential for energy generation: indigenous lands are the primary category for the Teles Pires HPP (41.6% of the most influential 25% of forest area), while private rural properties registered under SIGEF are most important for the Paraná Basin HPPs (approximately 40% of the impact).
• Reduced hydroelectric output due to deforestation may increase energy insecurity, raise electricity prices, and force an increase in the use of fossil fuel-based thermoelectricity, which would aggravate greenhouse gas emissions.

APA

Climate Policy Initiative (2024). Cutting Down the Hydropower Plants: How the Amazon Deforestation is Jeopardizing Electricity Generation in Brazil. https://www.climatepolicyinitiative.org/publication/cutting-down-the-hydropower-plants-how-the-amazon-deforestation-is-jeopardizing-electricity-generation-in-brazil/

Chicago

Climate Policy Initiative. Cutting Down the Hydropower Plants: How the Amazon Deforestation is Jeopardizing Electricity Generation in Brazil. 2024. https://www.climatepolicyinitiative.org/publication/cutting-down-the-hydropower-plants-how-the-amazon-deforestation-is-jeopardizing-electricity-generation-in-brazil/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Cutting Down the Hydropower Plants: How the Amazon Deforestation is Jeopardizing Electricity Generation in Brazil |date=17 October 2024 |url=https://www.climatepolicyinitiative.org/publication/cutting-down-the-hydropower-plants-how-the-amazon-deforestation-is-jeopardizing-electricity-generation-in-brazil/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2024cutting, author = {{Climate Policy Initiative}}, title = {{Cutting Down the Hydropower Plants: How the Amazon Deforestation is Jeopardizing Electricity Generation in Brazil}}, institution = {Climate Policy Initiative}, year = {2024}, month = oct, url = {https://www.climatepolicyinitiative.org/publication/cutting-down-the-hydropower-plants-how-the-amazon-deforestation-is-jeopardizing-electricity-generation-in-brazil/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }