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BRAZIL: POWER PRICES ARE CHANGING WHAT ARE THE NEW OPPORTUNITIES? RAFAEL HERZBERG, MANAGING DIRECTOR AT INTERACT LTDA, ENERGY CONSULTING (SÃO PAULO, BRAZIL)

Brazilian energy market: new challenges and opportunities

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Page 1: Brazilian energy market: new challenges and opportunities

BRAZIL: POWER PRICES ARE CHANGINGWHAT ARE THE NEW OPPORTUNITIES?RAFAEL HERZBERG, MANAGING DIRECTOR AT INTERACT LTDA, ENERGY CONSULTING (SÃO PAULO, BRAZIL)

Page 2: Brazilian energy market: new challenges and opportunities

CURRENT POWER PRICES AND LONG TERM

06-Jun-15

13-Jun 19-Jun 27-Jun 04-Jul 11-Jul 18-Jul 25-Jul 1-Ago 7-Ago100

150

200

250

300

350

400

WAC, INTERACT CMO, ONS

R$/M

Wh

Page 3: Brazilian energy market: new challenges and opportunities

THE BRAZILIAN REAL: 50% DEVALUATION IN A YEAR

2.3 R$/USDAug 2014

3.5 R$/USDAug 2015

Page 4: Brazilian energy market: new challenges and opportunities

A NEW SCALE OF RELATIVE ENERGY PRICES

Page 5: Brazilian energy market: new challenges and opportunities

THE NEED TO REFINE DECISION MAKING PROCESSES

Info Analysis Options Decisions

TaskForc

e

Officers

Managers

Operations

Results

Consultant

Page 6: Brazilian energy market: new challenges and opportunities

REDUCING COSTS AND EXPOSURE TO RISKS

Energy contracting Portfolio of energy sources

Long term contracts

Volume flexibility to arbitrate costs

Energy efficiency Energy management

Retrofitting

Onsite generation/cogeneration