Will energy price volatility increase in Brazil?
A major change has occurred in the profile of Brazilian electricity supply, based on 3 aspects:
Run-of-river plants
Years ago, the decision was to build run-of-river hydroelectric plants, instead of the traditional ones with big reservoirs.
Solar and wind generation
These currently represent a significant portion of generation, which is a “non-firm” type, as they depend on the incidence of sunlight and wind.
Forecast of less rain this year
Meteorologists have been predicting that, in 2025, there will be less rain in the country’s river basins, which feed the hydroelectric plants. The good news is that there is a way to prepare to mitigate this risk. It is an issue that can and should be addressed by those who are responsible for managing energy for their companies or institutions and who want to be among the winners!
