Top 10 Brazilian States with Highest Tariff Increases (2020-2025)

1. Pronounced Negative Correlation:

The chart reveals a strong inverse relationship between tariff increases and renewable participation. States like Acre (AC), with an 78% increase and only 25% renewables, contrast with Alagoas (AL), showing a 53% increase with 60% renewables. The average increase among the top 10 states with the highest rises is 62%, while the average renewable share is 37%, indicating that reliance on non-renewable sources (mainly diesel and thermal plants) is a key driver of these hikes.

2. Regional Impact:

The North (AC, PA, AP, RR, AM) leads with an average increase of 68%, driven by logistical isolation, heavy diesel use (average cost of R$ 5.50/liter in 2025), and limited hydroelectric integration. The Southeast (RJ, 57%) also appears, reflecting strain on interconnected systems. Meanwhile, the South/Southeast (e.g., SP, 32%) benefits from matrices with 70-80% renewables, curbing increases.

3. Cost Opportunity of Renewables:

States with higher renewable shares (e.g., AL, 60%; PI, 55%) exhibit more moderate increases, suggesting that investments in solar, wind, and biomass could reduce tariffs by 30-40% in fossil fuel-dependent areas, with solar system paybacks in 3-4 years.

4. Market and Policy Dynamics:

The lack of federal incentives for renewables in the North (only 5% of the energy transition budget in 2025) exacerbates vulnerability. Projects like the 1 MW solar pilot in Acre, which cut local bills by 20%, demonstrate viability but require scaling.

The results confirm a significant negative correlation:

States with low renewable penetration face disproportionate tariff increases, while those with greener matrices maintain stability. The North’s reliance on costly thermal plants is unsustainable, with Acre (+78%) as an extreme case. Transitioning to solar PV and wind, especially in isolated regions, could cut costs by 50% in the medium term, aligning with decarbonization goals. I urgently recommend regional subsidy policies and public-private partnerships to accelerate renewable adoption.

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