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Cost of power sources in Brazil

image credit: Rafael Herzberg
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...

  • Member since 2003
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  • Jun 22, 2022

Cost of power sources in Brazil

This is an increasingly frequent topic among corporate and institutional executives.

They want to prospect alternatives that have conditions to reduce their costs (power bill).

And here's an assessment (order of magnitude) of net-of-tax values ​​from four well-known sources.

Of course, each case must be evaluated with its own scale of relatives costs especially considering the local electric utility company. There are potentially other alternatives such as the use of biomass, natural gas, liquefied petroleum gas, among others.

* Power contracted in the deregulated market - R$ 340/MWh

    -  R$ 180/MWh (commodity - Dcide source)
    -  R$160/MWh ("wire fees" - calculated with A4 ENEL SP tariffs)

* Power in the regulated market - R$ 450/MWh

    - R$ 290/MWh (weighted peak and off-peak with A4 ENEL SP tariffs)
    - R$ 160/MWh ("wire fees" calculated with A4 ENEL SP tariffs)

* Local photovoltaic power: R$ 720/MWh

  - Investment R$ 6 thousand/kW installed
  - Production 120 kWh/kW installed/month
  - Interest rate: 1% per month
  - Term: 10 years

* Emergency power (local generator set)

  - Variable cost via bio-diesel of R$ 2,000/MWh

1 USD = R$ 5.1
And there is still a much more challenging opportunity: what is the cost of energy efficiency projects? Often this cost (avoiding consumption) is much lower than that of the sources above, so it is worth exploring this alternative as well!


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Thank Rafael for the Post!
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