In the free electricity market, the price of energy for long-term future delivery rose - already 32% in 1 year- reaching R$200/MWh (USD 37/MWh).
How can this price be evaluated?
I still consider R$200/MWh attractive because it is below the marginal cost of expansion (MCE), which I always calculate as a reference.
MCE is the price resulting from new hydro power plants to be built. It is a "technical" price that offers consistent return on invested capital and over the useful life of the plant.
However, hydrological challenges (especially with the possible "arrival" of La Niña) point to a supply "stress." It is time to assess the situation and consider strategies to address this challenge. I am available, as a consultant, to help!