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21% power rates increase in 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...

  • Member since 2003
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  • Nov 23, 2021

21% increase

This is the market expectation for 2022 with respect to electricity tariffs in Brazil.

The main reasons:

* Inclusion of  projects with no feasibility in selected privatizations
* Dispatch of thermal power plants to face the crisis
* Voluntary Demand Reduction incentive program
* Water scarcity "flag" (additional costs)
* Emergency auction for capacity
* Loans to distribution companies

And so the cost of Brazilian electricity is increasingly distant, in the light of the market (BRICS - Brazil, Russia, India, China and South Africa).

The electricity sector needs - urgently - honesty, professionalism and application of established practices in the energy sector. In the meantime, Brazil is going downhill.


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Thank Rafael for the Post!
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