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Wed, Aug 20

Future power prices (Brazil)

The price is the result of the balance between energy supply and demand, of course!

It's very difficult to predict future prices given the number of important variables that are always at stake.

And so, making decisions about contracting energy for future deliveries becomes a very sensitive task.

I've had great success suggesting that my consulting clients use the marginal cost of expansion as a benchmark.

It's a "technical" price that identifies a balance for investors in new power plants to be built. If you'd like to learn more about this "metric," get in touch—you'll certainly be surprised by the simplicity and robustness of this very practical concept!

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