Over the last few decades, Brazil’s strategy has been to strongly incentivize non-firm energy sources, such as solar and wind.
The tangible result can be seen in the significant reduction in actual energy delivered relative to Brazil’s installed generation capacity.
In broad terms, at the beginning of this century, the average gigawatts (GW) delivered by the National Integrated System corresponded to 50% of the total installed capacity (in GW). Today, it is 35%.
This implies a relative increase in CAPEX (capital expenditure) and a corresponding rise in the costs associated with its amortization—which, naturally, impacts energy tariffs and prices.