Energy price volatility (Brazil)
The energy matrix mix is characterized by the growing participation of non-firm sources (solar and wind) and run-of-river hydroelectric power plants.
The result is greater “sensitivity” to climate variations, especially in cases of lower rainfall in the river basins that feed the hydroelectric plants.
And also the effects of the “duck curve” (in the late afternoon and early evening) when “traditional” sources need to take over the lack of solar production and, of course, with the variation in winds that trigger wind power).
The result is a greater propensity for high price volatility, both short-term and long-term.
The recommendation I always make is to create a “package” of sources that can mitigate the risks arising from the increased volatility that can be expected. The first step is to understand this new phenomenon. Feel free to talk to me!
