Brazil: The blanket is too short!
- February 12, 2019
- 207 views
The blanket is too short!
The reservoirs that supply the hydroelectric power plants (that account for more than 70% of Brazil's power matrix) present in mid-summer, at the height of what would be the rainy season, only 35% of their nominal capacity.
It is equivalent to about 1.3 months of national energy consumption, stored in water. Very little to mitigate the risks of year-round volatility, considering the dry period that lasts more than half a year.
As always, the expectation is that short-term prices will skyrocket. In the same line the prices for future delivery should increase to a new level.
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