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Subsidies - electricity (Brazil)

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...

  • Member since 2003
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  • Mar 15, 2023

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


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Thank Rafael for the Post!
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