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