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Rafael Herzberg
Rafael Herzberg
Expert Member
Top Contributor

Subsidies - electricity (Brazil)

Subsidies - electricity (Brazil)

The Energy Development Account budget will be BRL 34.9 billion in 2023.

What size is it?

I like to refer these absolute values in comparison with the energy delivered by the national integrated system.

The result is, roundly, R$ 70/MWh.

Is this a small or a big  number?

The price of energy on the free market for future delivery is around R$110/MWh.

That is, subsidies represent a super important value.

It is no wonder that Brazil remains at the bottom of the energy cost ranking in $/MWh compared to our competitors (BRICS - Brazil, Russia, India, China and South Africa).

Wouldn't it be high time to reassess the allocation of taxpayers' resources? To grow and become developed we need to COMPETE!

PS 1 USD = R$ 5.2