Brazilian electricity sector: Example of official (bad) decisions

Brazilian electricity sector: Example of official decisions

Itaupu, a giant hydroelectric power plant worldwide, built decades ago is already amortised.

It should, by global standards, be one of the most competitive, given its scale and the fact that the main expense of generating plants (amortisation) is already zero.

But, of course, we are in Brazil, and, by far, it is not quite like that.

On the contrary. The energy delivered is one of the most expensive as reported (https://www.noticiasaominuto.com.br/economia/2143512/energia-de-itaipu-e-a-mais-cara-das-grandes-hidreletricas-diz-estudo).

This situation actually corroborates a harsh reality: the Brazilian electricity sector is incompetent, without competitiveness and worse: nothing changes from a historical perspective.

And so our electricity costs remain at the mercy of the same command “system”, without competitive parity. We are the last on the $/kWh scale when the reference is the BRICS (Brazil, Russia, India, China and South Africa).