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Brazil: Challenges for 2019 and beyond
This item is part of the Special Issue - 2019-01 - Predictions & Trends, click here for more
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Brazil: Challenges for 2019 and beyond
Rafael Herzberg, consultant/energy affairs
Beautiful country, attractive women, great food, mild temperatures through the year, what else could one wish but mama’s delicious apfelstrudel?
It is not that simple! When it comes to the energy markets and more specifically the power markets, Brazil is among the laggards. And by far:
• Demand response is only but an idea, no actual programs in place
• The Brazilian power clearinghouse does not settle as it should (USD Billions are owed)
• Solar energy is being stimulated (and subsidized) but no actions are taken to mitigate the “duck curve”
• There is no “flight plan” for the power sector. It is about deciding on a daily basis as opposed to a strategic, long term plan for a capital intensive sector
• Power prices in Brazil is higher than the BRICS competition (Brazil, Russia, India, China and South Africa)
The proposed insight is about the need to become aware of this challenging situation. What needs to happen to turnaround this situation? What should be the key drivers?
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