
Customer Care Group
This special interest group is where customer care professionals share tactics on how utilities are improving interactions with their customers.
Post
Power-price-trends (Brazil)
Power-price-trends (Brazil)
The changes in the political/economic scenario in Brazil point to a new level of power prices for future delivery.
The calculations that I always show clients is related to the amortization of investments in the expansion of the supply side. It is a simple, robust and easy to understand.
* Investment in renewable plants: R$ 5,800/kW
* Amortization term: 20 years
* Monthly interest rate: 1.2% (includes country risk)
* Load factor: 50%
It results in a cost of R$ 240/MWh.
The current market price, offered by renewable power plants, for long-term contracts, is around R$ 170/MWh.
Bottom line: the prevailing trend is of an important increase in power prices of those plants to be built ("marginal cost of expansion")..
PS 1 USD = R$ 5.8
Discussions
No discussions yet. Start a discussion below.
Get Published - Build a Following
The Energy Central Power Industry Network® is based on one core idea - power industry professionals helping each other and advancing the industry by sharing and learning from each other.
If you have an experience or insight to share or have learned something from a conference or seminar, your peers and colleagues on Energy Central want to hear about it. It's also easy to share a link to an article you've liked or an industry resource that you think would be helpful.
Sign in to Participate