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Electricity sector obeys the Brazilian president?

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...

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  • Oct 18, 2021

Electricity sector obeys the Brazilian president?

The water crisis is acute. The very low reservoirs that feed our hydro power plants (most of the country's power mix).Thermal plants (much more expensive than hydro) being dispatched to ensure that the country's demand is met.

The scenario has not changed significantly these past few weeks. The rains that occurred recently brought some hope but the picture is still very delicate.

Even so, the marginal operating cost, published by the National System Operator, surprised me: it is around R$170/MWh for this week, a typical value for reservoirs at a normal level - which by far is not the case.

The question that intrigues me is the hypothesis that Brazilian electrical institutions are fulfilling the president's order to put an end to the water crisis flag.(associated additional cost) - artificially!

And if so, who will pay the cost that will remain for a long time with the dispatch of the thermal plants, which require the revenue from the water crisis flag to make their operation viable?


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Rafael Herzberg's picture
Thank Rafael for the Post!
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