Commodity Market Report
Brazil power market and industry overview 2020
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Report summary
The Brazilian electricity sector is suffering from a 7-year long drought, but system operators managed to avoid rationing measures through the dispatch of thermal power plants and increasing renewable generation. The drought-driven extra cost is testing the limits of the current regulatory framework. Leveraging the work of the former administration, the government designed a comprehensive regulatory reform to reorganize the sector and improve its financial health. In this report, we provide a complete view on these issues. We also touch system fundamentals, policy and regulation, prices and auction results. This version also features a section highlighting the regulated auction framework to award power purchase agreements for thermal power plants.
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