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Energy in Brazil: where is the catch?

Energy in Brazil: where is the catch?

Recent auctions show that the power rices for future delivery have been in the range of R$ 150/MWh - USD 40/MWh - a truly competitive level.

So what is the reason why Brazilian energy is so out of international parity, particularly with respect to the BRICS?

Producing energy, transmitting it, and distributing it is something we essentially do well technically.

What "spoils" our situation is a set of distortions that we never have the courage to address:

  • Subsidies
  • Power theft
  • Delinquency by the official power clearinghouse
  • Demand response that never took off
  • Taxes 

The challenge for Legislative, Executive and Judiciary  is focusing on competitiveness. Other than that, we will remain undeveloped in the electricity sector.

Rafael Herzberg's picture

Thank Rafael for the Post!

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