Welcome to the new Energy Central โ€” same great community, now with a smoother experience. To login, use your Energy Central email and reset your password.

Rafael Herzberg
Rafael Herzberg
Expert Member
Top Contributor

(Real) cost of energy

(Real) cost of energy

If you have signed an energy contract on the free market, from a hydroelectric plant, you will be - on average - allocating a source that offers around 70% of capacity factor.

This means that the integrated system needs to offer 30% of "backup" to "complete" the need. If you have signed a contract with a solar source, the capacity factor is 20% because there is no sun at night and there are some days when clouds hinder production.

In other words, there must be 80% backup. As solar energy exponentially increases its penetration in the Brazilian market, this "extra" "backup" becomes increasingly "voluminous" and costly.

The difference in cost between these two sources (hydroelectric and solar) is relevant, of course. Moral of the story: each source should have the backup cost allocated.

As an "agnostic" system should be. And not like today, where everyone pays, including those who do not contract energy with a low capacity factor.

1