Brazilian power prices rising?

For many months, the hourly PLD ("spot") and even its daily average remained stationary at R$69/MWh.

In recent weeks there has been a "detachment".

At many times of the day the PLD was R$69/MWh but, in the late afternoon and/or early evening, the hourly PLD increased considerably.

It's still too early to know whether the trend is "here to stay" BUT there are important conditions to be considered.

1) Drought in the North

Potential to stress the national integrated system (SIN) as electrical energy must then be dispatched from other regions of the country to meet demand in the North

.2) Increase in National Demand

The "arrival" of summer normally requires more energy from the (SIN) as the increase in temperature is associated with more intense use of air conditioning

.3) Effects of El Nino/El Nina

Meteorologists have pointed to the growing influence of these climate phenomena that result in stronger extremes (droughts/rains) and that will potentially change the reservoir (most important power source in Brazil) scenario.

1 USD = R$ 5