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Crisis or decay 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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  • Nov 18, 2021

Crisis or decay in Brazil?

This question has arisen in relation to the electricity sector.

Crisis is a situation that demands attention and proactive positioning to face and resolve it. Decay is a passive posture of acceptance of systemic deterioration.

Crisis is usually associated with identifying and resolving conflicts. And for this very reason it can be a door to a new and successful beginning.

Decay points to an erratic conduct by leaders who do not care or are unable to reverse the situation..

It is in this context that the following facts fit.

1. End of demand response program before even being actually tested for real
2. Spot price reflecting reservoirs well supplied while they are in fact very low
3. Short-term loans to pay the cost of thermal power plants that will be charged "in the future"
4. "Power theft remains strong as ever
5. Brazilian energy cost is the most expensive among the BRICS

There is a strongly established decay pattern. What would need to happen to turn around this situation?


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Thank Rafael for the Post!
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