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Energy: cleaning the mess is the first step

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...

  • Member since 2003
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  • Feb 15, 2021

Energy: cleaning the mess is the first step

The Brazilian electrical system is essentially messy.

1. Power theft represents more than 10% of the energy delivered
2. Demand response programs do not exist in practice
3. The "duck curve" is not in the agenda
4. Systematic economical imbalance of state-controlled energy companies
5. Regulated rates and wire fees set below long-term economic viability
6. Subsidies paid by "other consumers"
7. Default of the official clearinghouse
8. Increasing thermal participation in the energy matrix
9. Privatization program (energy companies) stopped for decades
10. State energy companies unable to invest in their expansion

The consequence of the mess is the cost of Brazilian energy, the most expensive among the BRICS.

There is a way out, of course! Fix the electrical sector. But there is no willingness and drive. It is much easier and more convenient to maintain the cronyism style that serves wonderfully well-known interests.

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