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What will the energy market look like in 2020? Opportunities and challenges

The Brazilian energy sector is projected to grow by 4.5% in 2020, but electricity bills will increase by 2.42%. The installed capacity of the power generation sector will grow by more than 50%, totaling around 20 billion reais due to subsidies for solar and wind energy. Power generators offer an economical alternative for companies, reducing peak hour costs by up to 30% and ensuring operational continuity.
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Electric power is essential for the development of all economic activities in Brazil.

According to data revealed by the Energy Research Company, the estimate is that the energy sector will grow by approximately 4.5%.

If you want to know what to expect from the energy market for the coming year and what options are available for accessing quality electric power, check out the information we will share below.

Demand Forecast: What to Expect from the Electric Power Sector in 2020

When discussing increased consumption, it’s important to question what the numbers represent so we aren’t caught off guard, especially regarding the quality of energy supply in Brazil.

From an economic standpoint, it’s crucial to consider the costs we will incur due to increased consumption.

According to a study conducted by the National Electric Energy Agency (ANEEL), electricity bills will increase by 2.42%.

For the year 2020, from the Government’s perspective, the PDE outlines the expansion prospects for this sector.

Thus, the installed capacity of the electric power generation sector in Brazil is expected to grow by more than 50%.

This will result in a record of approximately 20 billion reais in electricity bills, information provided by the National Electric Energy Agency (ANEEL).

This amount is justified because consumers will have to bear the actions and subsidies granted by the government to the energy sector, especially regarding solar and wind energy.

The revision of diesel oil prices used for power generation in isolated areas is one of the reasons for the increase in the subsidy account.

To alleviate this problem, part of the cost related to the purchase of fuels for thermoelectric plants is shared among consumers. This prevents bills from becoming too expensive.

Thus, for 2020, we can expect a value approaching 7.5 billion reais. This represents an increase of about 20% compared to 2019, when the bill was approximately 6 billion reais.

Given this, we must be prepared for potential problems related to electrical efficiency, fluctuations, system failures, and possible blackouts.

All of this can negatively impact activities in the commercial and industrial sectors.

Economic Alternatives for Energy Security in 2020

Regardless of the sector, energy discontinuity negatively impacts revenue. The event’s quantification varies from sector to sector and also depends on the downtime duration.

To mitigate the negative effects of scheduled or emergency interruptions, investment alternatives should be studied to reduce or even eliminate energy supply failures.

If you work in commerce, industry, agribusiness, construction, or other economic sectors that require continuous and efficient electric power supply, without relying solely on conventional utilities.

Some regions in Brazil have renewable energy sources (wind, solar, and biomass), but this represents only 18% of Brazil’s total electricity generation and does not serve a variety of regions due to natural or infrastructure issues.

Electricity generation from wind energy can be seen in some Brazilian cities, but its implementation cost is high, and monthly expenses are comparable to energy produced from petroleum derivatives, coal, and natural gas.

In business contexts, the best solution to avoid blocking and fluctuation issues in electricity supply is to have a power generator.

This equipment can significantly reduce monthly electricity bill expenses. The peak hour, occurring between 6 PM and 9 PM, is the main driver of high bills for factories, companies, and other consumption.

A generator that meets a company’s energy needs, if used correctly, can contribute to a reduction of up to 30% in monthly electricity consumption provided by the utility.

Moreover, it can be used by companies of various sizes and offer numerous benefits. One of them is ensuring productivity, as employees won’t risk stopping their activities due to a lack of energy.

The generator also ensures that all machines and equipment operate at maximum performance. A sudden power outage can lead to failures, which are avoided by using this equipment.

In terms of security, the generator can also perform excellently. It ensures that cameras, alarms, electric fences, and other systems operate properly.

Additionally, this equipment prevents losses caused by the loss of raw materials or products that might not receive adequate cooling or heating if there were problems with conventional electric power supply.

Buy or Rent a Generator?

Regardless of the decision to buy or rent, the important thing is that with the generator set, the company will be covered for potential failures of the utility network, whether scheduled or emergency.

If the generator set is part of your company’s core business and the need is long-term, it is recommended to purchase the generator set instead of renting. In this option, maintenance costs and equipment depreciation should be included.

In the generator rental option, the rental company assumes maintenance and depreciation costs throughout the contract. This alternative can offer the best cost-benefit. The advantage of this service offered by Tecnogera is that it ensures the installation and maintenance of the equipment.

The equipment can serve as a protection source against potential power outages, maintenance shutdowns, peak hours, among other situations.

If you want to prepare to make the most of energy sources in 2020 and keep problems away from your company, it is worth taking advantage of all the benefits provided by generator rental.

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