The Generation Professionals Group is for utility professionals who work in biomass, coal, gas/oil, hydro, natural gas, or nuclear power generation fields. 


Electric power spot (Brazil)

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,...

  • Member since 2003
  • 2,427 items added with 1,405,893 views
  • Nov 3, 2021

Electric power spot (Brazil)

The spot price of electricity in the free market is based on a classic concept: the marginal cost of operating the electricity system.

That is, the cost for the national system operator (Brazilian ISO) to dispatch an additional 1 MWh considering the available power matrix.

As we all know, Brazil is facing a historic water crisis (that feed the hydro power plants) and thermal power plants are "saving" the country from a blackout.

A natural gas thermal power plant uses 1 m³ of fuel to produce 5 kWh. Considering the price of R$1.6/m³ of gas, the cost of fuel referred to the energy produced is something above R$300/MWh.

How can the spot published by the CCEE (Brazilian power clearinghouse)) be in the order of R$ 100/MWh?

1 USD = R$ 5,7


No discussions yet. Start a discussion below.

Rafael Herzberg's picture
Thank Rafael for the Post!
Energy Central contributors share their experience and insights for the benefit of other Members (like you). Please show them your appreciation by leaving a comment, 'liking' this post, or following this Member.
More posts from this member

Get Published - Build a Following

The Energy Central Power Industry Network® is based on one core idea - power industry professionals helping each other and advancing the industry by sharing and learning from each other.

If you have an experience or insight to share or have learned something from a conference or seminar, your peers and colleagues on Energy Central want to hear about it. It's also easy to share a link to an article you've liked or an industry resource that you think would be helpful.

                 Learn more about posting on Energy Central »