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Brazil & Energy: the harsh reality

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 28, 2020

Brazil & Energy: the harsh reality

When I consult for companies and institutions, there is a common aspect that has always caught my attention for decades. The prevalent perception of lack of predictability and respect for contracts here in Brazil.

The corporate world compares what happens here with other countries:

1. Important issues such as the official clearinghouse (CCEE) billion dollar default, take many years to be resolved against a few months in nations with which Brazil competes.

2. A list of challenges that represent important costs is always off the agenda. The power thefts, for example, which are carefully called "non-technical losses" have been representing two percentage digits for decades and are simply transferred to the "others".

3. The lack of programs that encourage the efficient use of energy such as DR (demand response) and BYOD (bring your own device) that produce benefits for suppliers and consumers. In Brazil they only exist on paper.

The cost of Brazilian power is the highest among the BRICS.

When will Brazil take the initiative to recognize and turn around this situation?


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