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Rafael Herzberg
Rafael Herzberg
Expert Member
Top Contributor

Energy: Government and State

Energy: Government and State

Theoretically, there is a global consensus among democratic countries that the State should create policies and the Government should implement them.

The State is therefore responsible for the strategy. The Government is responsible for implementing it in a careful/parsimonious manner.

Particularly in the energy sector, which is a capital-intensive one, this "definition" should be followed to the letter, since large volumes of resources are involved.

However, the harsh reality has shown that these "definitions" have been abandoned. The established powers (legislative, executive and judiciary) end up "composing" themselves around interests that benefit them - generally having nothing to do with what would be best for the population.

Energy sector projects without economic viability are "promulgated", and the "unceremonious" inclusion of them on the agendas regardless of technical, financial, management and legal criteria is "normal". It is no wonder that Brazil is at the tail end of the market (BRICS - Brazil, Russia, India, China and South Africa) in terms of $/kWh.