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Effects of the war

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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  • Jun 20, 2022
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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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Julian Silk's picture
Julian Silk on Jun 21, 2022

Let's put it this way, and I am being as polite as I can, which is not that polite.  The effects could conceivably be more in other sectors of the economy, such as the flex-fuel vehicles sector, depending on policy.

Rafael Herzberg's picture
Thank Rafael for the Post!
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