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Subsidized Electric Energy... until when?

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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  • Sep 20, 2022
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Subsidized Electric Energy... until when?

Brazilian Small Hydroelectric Power Plants have been granted for many years now - a subsidy, in order to become competitive in the deregulated power market.

In the very beginning it made sense... for them to scale.

Fortunately, the price of subsidized energy is now very competitive. There is no need for the subsidy (anymore). Whoever contracts this energy even without subsidy will make robust savings in relation to the regulated market.

And why is this observation important?

The subsidy is paid by the electricity consumers! There's no need anymore.... so the recommended posture would be to remove it.

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