This article will address the following issues
Caída
What explains the dramatic drop in the price of wind energy in Brazil, which occurred in the last energy auction? energy auction?
The trend
Is this a trend that is likely to continue in these countries and elsewhere?
Challenges
Will the companies have problems producing electricity at these prices and therefore fulfilling their contracts? their contracts?
Let us compare the situation in other countries
In other countries, wind electricity has already been produced more cheaply than the low prices we are currently experiencing in Latin America.
currently experiencing in Latin America. In regions such as Texas, contracts with prices ranging from US$ 50 to 70/MWh are no
US $ 50 to 70/MWh are no exception, also including tax incentives. In addition, it must be understood that production costs
it must be understood that electricity production costs are decreasing based on higher wind resource
availability of the wind resource and plant factors.
So it is not surprising that the prices observed in Brazil are in the low range, as capacity factors there are much higher compared with
capacity factors are much higher there compared to the average rates in Europe or the U.S., so it is not surprising that prices in Brazil are in the low range.
Europe or the United States.
What else is affecting the situation?
However, in addition to the reduction in the cost of wind turbines that has occurred in recent years, it is important to consider an additional factor, namely, access to cheap financing, which has important to take into account an additional factor, namely access to cheap financing, which is key for a capital-intensive industry in countries where additional risks (political, political, economic, financial, etc.) are is key for a capital-intensive industry in countries where the additional risks (political, technical, regulatory, etc.) contribute to higher electricity generation costs.
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