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Energy in Brazil: how to become competitive?

image credit: What's the Brazilian power sector like?

Energy in Brazil: how to become competitive?

This week I asked this question. The answers were consolidated into 5 suggestions.

1st) Market driven outlook

The energy sector should be open. The current system, although with competitive appearance, is in fact associated with state owned power companies. Brazil is the most expensive (USD/MWh) among the BRICS (Brazil, Russia, India, China and South Africa)

2nd) Distributed generation

It is necessary that those who use the public grid (to sell surpluses for example) pay for the capacity used

3rd) Regulatory entity

It should be independent. But ANEEL is slow, bureaucratic and on important issues - for years - has been silent (demand response programs never took off and systemic default in free market liquidations).

4th) Simpler and more transparent tariffs

 The tariffs should follow a simple calculation of amortization of investments in the expansion of the matrix, purging a list of ongoing subsidies, incentives and doubtful norms.

5th) Electric vehicles

Preparing for electric vehicles is a decision of countries that clearly want to achieve less emissions, more energy efficiency and even a lower final cost than combustion cars. Brazil is way behind!

Rafael Herzberg's picture

Thank Rafael for the Post!

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