Fri, Oct 23
Rafael Herzberg
Rafael Herzberg
Expert Member
Top Contributor

Electricity in Brazil: USD 10 billion in subsidies

This figure primarily relates to the Energy Development Account (CDE) for 2027โ€”a fund that finances programs and subsidies within the electricity sector, including:

Social Tariffs for low-income consumers;

Universal access to electricity (such as Electricity for All]

Subsidies for distributed generation;

Incentives for renewable energy sources;

Generation costs in isolated systems within the Amazon region.

To assess the impact of this figure on electricity bills, I compared it against the total annual volume of electricity consumption in Brazil, arriving at a cost of approximately USD 20/MWh per year.

That is a significant amount! And this brings us to the core question: does it make sense?

1