Energy Strategies: short and long term
The electricity sector is capital intensive. It requires huge investments.
To make them viable, the recipe is very well known. Institutional strength, simple and consistent rules, respect for contracts and, above all, competitiveness.
In Brazil we have:
1) An institutional "salad". A privatisation that started at the end of the 90s and stopped in the middle.
2) Super complex regulation that demands large "back offices" when compared to countries that are ahead of us.
3) An open disregard for the most logical commandments. In the Amazon for example (in recent years) the introduction of gas plants that needs to be transported by ships.
4) Brazil, unceremoniously, remains at the bottom of the market in $/MWh
And... what is the challenge? We do not have short, medium and long term "winning" strategies that offer what the country needs.
Rafael Herzberg
Expert Member
Top Contributor