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Lower future power prices in Brazil?

Lower future power prices in Brazil?

The official power supply auctions starting from January 2023, contracted in the long term (between 20 and 30 years), closed prices really attractive for solar sources (equivalent to USD 18/MWh) and wind (equivalent to USD 22/MWh) .

In fact, these prices are simply spectacular!

It remains to be seen whether these prices will change future references for regulated rates as well as deregulated prices.

The doubt deserves careful consideration from power buyers and sellers, since our regulation of the electricity sector is not an example of solidity, predictability and even compliance by the official institutions (delinquency).

I hope that we are facing a turning point in which future power tariffs and prices in Brazil will be much more aligned with the competitive parity.

Rafael Herzberg's picture

Thank Rafael for the Post!

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Discussions

Matt Chester's picture
Matt Chester on Jul 22, 2019 12:26 pm GMT

How do these prices compare with other recent auctions in Brazil? Surely seems lower, but I'm curious how much lower?

Rafael Herzberg's picture
Rafael Herzberg on Jul 22, 2019 6:22 pm GMT

The available reference was R$ 150 - 200/MWh for renewable sources such as hydro, wind and solar  (1 USD = R$ 3,7).
The last auction was a major change!

Matt Chester's picture
Matt Chester on Jul 22, 2019 10:11 pm GMT

You said it!

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