Reference of future power prices in Brazi/Interact

Though this is a specific discussion and forecast of energy prices for Brazil, it is meaningful, and necessary, for the rest of us to have this same discussion.  One of the great advantages of efficiency and renewables is to fix costs and predict power needs and prices.  All of the latest technology--hybrid-electric buildings, micro-grids, simple energy management systems combined with battery storage, look to match up needs and less-cost supplies.

Doing this on a national level, as Brazil is here, is complicated.  Yet, so much of our future, and the future on nations, is driven by energy, waste and smart tech.  If Brazil can get a good handle on powering their nation efficiently going forward, they will be have way there to a better financial performance.

Contracting energy and solutions involving its use – such as energy efficiency projects, portfolio of energy sources and distributed generation require – necessarily – the use of price references – otherwise how to come up with feasibility calculations?

With so many variables and uncertainties on the horizon of the Brazilian power sector, such as the changes in its rules under discussion, future power prices and rates are a big question mark.

But until a new “regulatory framework” is not reached, life goes on and companies and institutions must make decisions. The range of alternatives can be quite broad. From taking a defensive attitude of “wait and see” to betting on scenarios, considering the associated risks of each of them.

Perhaps we are in one of the most delicate moments of the Brazilian electric power sector in many decades. That is exactly why it makes sense to identify what is happening, to draw scenarios for good, consistent and auditable decisions.