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Power prices: a unique situation (Brazil)

Power prices: a unique situation (Brazil)

I have been following - for many years - prices and tariffs of electricity in Brazil. I use metrics, combining official information and my own calculations based on financial engineering.

From time to time, a coincidence occurs. This is, of course, a very special situation.
This week the following price references are "tied": 

  • Marginal cost of operations of the national electricity system
  • Long term prices offered by the deregulated power market 
  • "Technical" price of renewable power plants 

There is a balance that deserves to be identified and even "captured" for both sellers and buyers of electricity.

The big advantage is: closing deals at this time means closing solid deals for both parties involved. The price is fair and sustainable in the long term, signaling a healthy balance.

Rafael Herzberg's picture

Thank Rafael for the Post!

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