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Energy in Brazil: sophisticated and coarse

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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  • Nov 24, 2020

Energy in Brazil: sophisticated and coarse

A systematic deformity of the electricity sector, and even of the energy sector more widely, is living with two extremes.

Some features show sophistication. For example, the implementation for the New Year, of the hourly power price, which will reflect on free consumers, replacing the weekly price. There is potential to generate important benefits.

Others denote extreme rudeness, but are unhappily prevalent. The blackout in Amapá, the systematic theft that steal more than 10% of all energy delivered in the country, the ostensive and billionaire default for years by CCEE (the official power clearinghouse), the official energy companies that should have been privatized a long time ago, the lack of a demand response program and the list goes on and on.

We do not have actual leaders in charge capable of structuring a robust and negotiated strategy with all those involved, nor do we have a timeline with activities, deadlines and responsibilities to transform strategy into results.

While we are adrift, and given our lack of leading capacity we end up facing the obvious: energy prices are more expensive than our direct competitors (Russia, India, China and South Africa).


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