South America Braces For Power Hike With Incoming El Niño

South American power markets could be in for a challenging summer this year if predictions of a moderate El Niño pattern materialize, according to Rystad Energy research. The year-long climatic phenomenon is characterized by unusually warm ocean temperatures, leading to hotter weather in general and changes in rainfall patterns, impacting both power demand and hydropower generation.

Hydropower is a fundamental source of electricity for many South American countries, with any drop in generation capabilities likely to trigger increased reliance…