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Power contracting (Brazil): window of opportunity

Power contracting (Brazil): window of opportunity

I believe that deregulated energy users are facing a window of opportunity in relation to closing contracts for future delivery.

Prices are very inviting. But there are two main factors that point to a potentially significant increase:

El Nina

Meteorologists have pointed out an increased probability that the phenomenon El Nina will cause a super dry and prolonged season in the south of the country, aggravating the situation of reservoirs in that region, thus reducing the supply of hydroelectric energy (which accounts for 2/3 of the power matrix).

Economic recovery

Analysts show that the country's economy is recovering. The drop in GDP in 2020 will be significantly lower than anticipated at the beginning of the pandemic, which tends to increase the demand for electricity.

For those who accept these two factors as important, it will be worth taking action!

Rafael Herzberg's picture

Thank Rafael for the Post!

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