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Electricity spot prices are expected to reach highs in July
- Spot prices are expected to reach at least $118
- Brazil is in the middle of its worst drought in a century
Electricity spot prices in Brazil are expected to hit the ceiling in July, with prices predicted to reach 583 reais ($118) per MWh. Brazil is currently experiencing the worst drought in ninety-nine years.
Chief Executive Officer (CEO) of Trinity Energia, an energy trader, Joao Sanchez, has said, ”Our estimate is that prices will remain above 500 reais/MWh until the end of the year”. ”Spot prices influence the futures curve, and the 2022 and 2023 prices are also high”, Sanchez added.
Despite the drought, Brazil is not expected to implement a load shedding schedule. However, Minister of Mines and Energy Bento Albuquerque, in a press release, says, ”In a transparent way, we have started to adopt measures to cope with this exceptional period. There is no indication of a reversal of the low precipitation scenario”.