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Effects of the war
Effects of the war
Most international analysts point to a short and medium term future associated with the continuation of the war in Ukraine.
One consequence of this scenario is that oil and gas prices may remain sky-high.
It is a simple assessment that is easy to accept for all of us who follow the development of international events more closely.
On the one hand, there is pressure from upward prices BUT the good news is that electricity prices in Brazil, as they are mostly made from renewable sources (water, wind, sun and biomass), can and should stand out positively, increasing (cost-wise) LESS than the rest of the economy.
And especially those sources that depend little on imported items, as they are less subject to the exchange rate and, the escalation of prices, in hard currency, from an extensive list of items.
Challenging times. But... Brazilian electric energy can be a very expressive successful lever to reach and maintain "well-behaved" power costs.
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