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Attractive power prices (Brazil)

Rafael Herzberg's picture
Consultant energy affairs Self employed

Rafael Herzberg- is an independent energy consultant, self-employed (since 2018) based in São Paulo, Brazil* Focus on C level, VPs and upper managers associated to energy related info, analysis...

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  • Dec 4, 2022
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Attractive power prices (Brazil)

The price of electricity offered by the free market - conventional or incentivized (including the discount on the wire fees) is approximately R$ 140/MWh.

The price to adequately remunerate the investment in the construction of new hydroelectric power plants (marginal cost of expansion - MCE) is around R$ 200/MWh.

Thus, the bid price is below the MCE. A situation that occurs because 1°) the hydro power plant reservoirs are well supplied and 2°) the market is "weak" (demand for energy).

Bottom line: Interesting times for the energy buyer.

If you would like to see the MCE calculation and access the prices offered by the market, please contact us. The subject is fascinating, simple and it can yield great cost savings by the decision to timely close contracts for future delivery.

1 USD = R$ 5.2
 

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Rafael Herzberg's picture
Thank Rafael for the Post!
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