
Utility Management Group
Senior decision-makers come together to connect around strategies and business trends affecting utilities.
Post
Power (Brazil): the "idleness" cost
Power (Brazil): the "idleness" cost
Electric power experts estimate that there is a systemic idleness - for at least 5 years - in the supply of more than 10 GW.
So what?
Each GW of installed capacity requires investments of 1 USD Billion. The associated amortization is USD 0.2 billion/year in round numbers. Considering 10 GW, it is equivalent to USD 2 Billion/year.
What's the size of this cost?
The national power consumption, is roughly 70 GW average. It is equivalent to USD 3/MWh. or R$ 16/MWh.
The current power market price for future delivery, is around R$ 150/MWh.
It means that idleness, which is embedded in the "wire fees", charged by the local concessionaire is approximately 10%.
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