Energy (Brazil): a significant “hidden” cost

Energy (Brazil): a significant “hidden” cost

Anyone who checks the evolution of the maximum demand of the national integrated electricity system, comparing it with the installed capacity, will see that there has been a significant relative increase over the l

ast decade. In other words, [installed capacity/maximum demand] has increased. And what is the consequence of this “new development”?

The wire fees that serve to amortize a good part of the capital invested in the production chain of the electricity sector needed/will need to be increased by the regulator.

And what would be the reason for this state of affairs? An important factor is the decision to prioritize non-firm energies such as solar and wind, to the detriment of those traditionally defined as hydroelectric with reservoirs.

Or, in this new “scenario”, there is a need to invest more for the same maximum demand. Brazil has such an important potential, still unexplored, of hydroelectric sources, which offer more competitive energy costs and lower emissions than the alternatives.

Shall we revisit this issue?