Insight
Brazil likely to overpay for gas-fired power in 2021 auction
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
On 8 February, the Brazilian energy planning agency EPE released the Reference Prices that will be used in evaluating bids for the upcoming thermal power auction. This auction will award power purchase agreements (PPAs) for 15-year terms. The PPAs will be awarded based on a cost-benefit analysis, of which gas pricing represents a significant component. Like last year’s auction, the Reference Price used for JKM is inconsistent with other indexes used and will distort the outcome of the cost-benefit analysis. The most attractive bids will likely cost consumers more for their power in the long run and also disconnected of the government program, “Novo Mercado de Gas”, to foster gas-to-gas competition in Brazil.
Table of contents
- Event and background
- Implications
- Analysis
Tables and charts
This report includes the following images and tables:
- Figure 1 – Evolution of EPE’s reference NBP and JKM
- Figure 2 – Comparison between EPE’s and past/future price indices
- Figure 3 – Comparison of total PPA costs for the first 15 years by gas indexation
What's included
This report contains:
Other reports you may be interested in
Country Report
Spain upstream summary
Spain has set an end date for oil and gas activities - In 2021, the Spanish government introduced the Climate Change and Energy ...
$4,080
Commodity Market Report
Brazil power markets long-term outlook H1 2025
The country outlook provides annual and monthly data of our analysis of the power value chain in Brazil until 2050.
$8,000
Asset Report
Bacalhau and Bacalhau Norte (formerly Carcara)
Bacalhau and Bacalhau Norte are a single large pre-salt accumulation located in Brazil's Santos basin.
$3,720
