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Power in Brazil: MCO in the heights

image credit: Rafael Herzberg
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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Power in Brazil: MCO in the heights

The Marginal Cost of Operation measures the cost of dispatching the national system to supply an additional 1 MWh out the Brazilian power matrix.

In times of normal hydrology (70% of the power produced in Brazil is hydro), the CMO is well behaved, in the range of R$ 100 to 200/MWh.

This week, it is at R$ 682/MWh, for the Southeast and Midwest regions - where most of the country's electric load are allocated.

Of course, low reservoirs require dispatch from thermal plants, much more expensive.

The CMO is a powerful signal used by those who consider it important to assess the supply vs. demand scenario for electricity.

It serves to subsequently discover the most competitive behaviors in relation to the energy bill for companies and institutions.

If you want to explore your possibilities in these challenging times, get in touch!

1 USD = R$ 5

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Thank Rafael for the Post!
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