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Still attractive: deregulated power prices (Brazil)

Rafael Herzberg's picture
Rafael Herzberg 161,795
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
  • 2,218 items added with 1,294,233 views
  • Mar 14, 2022
  • 712 views

Still attractive: deregulated power prices (Brazil)

Firm electricity prices for future delivery are - so far - "well behaved".

They have not - until now - been contaminated by the escalation of commodity (energy) prices around the world.

Find out how to take advantage of this opportunity. 

Make sure to identify for your case - what and how to make it happen!

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Julian Silk's picture
Julian Silk on Mar 14, 2022

Dear Rafael,

I'm missing something in this.  The financial prices may be fixed, and so an attractive opportunity, given delivery.  But what are the delivery options?  If an LNG exporter wanted to supply Brazil, how would it work?

J.

Rafael Herzberg's picture
Rafael Herzberg on Mar 16, 2022

Firm prices for future delivery means that the power trader offered a firm price for the length of time requested by the energy user. Then the buyer has just a few days to lock the deal.

These firm prices for future delivery may vary on a daily basis. It is market driven! 

Today deregulated power prices for large energy users are offered at R$ 185/MWh (1 USD = R$ 5 roughly). There have already been at far above R$ 240/MWh in August 2021. 

The same concept applies to LNG. The exporter (as per your question) has to find buyers and then lock a deal. 

Rafael Herzberg's picture
Thank Rafael for the Post!
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