Brazilian Electricity sector: what are the alternatives?

Brazilian Electricity sector: what are the alternatives?

The Brazilian Government has shown the need to reduce electricity tariffs.

The country has been (for many years) at the bottom of the market in terms of $/kWh when compared to the BRICS (Brazil, Russia, India, China and South Africa).

The official stance has been to seek financial resources to subsidize tariff reductions, such as – for example – using the distribution of dividends from Petrobrás and Eletrobrás.

It’s the easiest way. But…it does not create long-term sustainability.

Brazil needs 4 actions that countries at the forefront have already successfully undertaken, such as:

1. Demand Response Programs

To enable the delivery of more energy with the same installed capacity.

2. Elimination of power theft

To prevent the honest consumers from paying for the power thieves

3. Significant reduction in subsidies

For those solutions that can already “fly” on their own

4. Elimination of crony projects

Cut unfeasible projects to serve the “friends”

When will we demand what is best for the country?