Brazil’s Cheap Energy Stymies Cane Investments, Bradesco Says
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Falling electricity prices in Brazil are hindering investments in new sugar-cane mills, an analyst at Banco Bradesco SA said.
Prices of energy sold during the last government-organized auction for new power capacity fell to about 100 reais ($56.22) a megawatt-hour, from 144 reais in August 2010, Bruno Varella, an analyst at Osasco, Brazil-based Banco Bradesco, said today in a telephone interview. That’s about a third less than companies need to build the power plants that typically run cane mills, he said.