Utility Management Group
Senior decision-makers come together to connect around strategies and business trends affecting utilities.
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Power price trends (Brazil)
Power price trends (Brazil)
Two important references for decision-making processes involving the contracting of energy sources and their management are:
MCO - marginal cost of operations
and
MCE - marginal cost of expansion
MCO is about short and medium terms and MCE is about long term.
The MCO is quite volatile in Brazil (range between tens and hundreds of R$/MWh) because it depends essentially on two very "sensitive" parameters: level of the reservoirs that feed the hydroelectric power plants and market demand.
The MCE is more "behaved" and points to a "stable" value, in USD/MWh, and accordingly is exposed to the exchange rate (right now 1 USD = R$ 5).
If you would like to explore strategies to close robust and competitive contracts involving energy sources, make sure to evaluate MCO and MCE to go for well informed decisions.
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