In US dollars, however, the maximum price is below $58.6 per MWh set in October last year due to devaluations of the real currency.
Market players say they expected the higher price in local currency given the government’s need to compensate developers for a weakening real, higher inflation, higher financing costs and tougher regulatory requirements to connect and operate projects.
Several developers estimate a price cap of R$160/MWh is sufficient to cover that risk and allow projects to be profitable.Projects
