Will Brazil's federal government determine a compulsory electricity rationing by the end of 2021?
Market Rules
In June 2021, Brazil's secretary of Mines and Energy stated that there was a possibility of electricity rationing and blackouts in 2021. The speaker of the House of Representatives, Arthur Lira, even said that the government planned to implement an "educational" energy rationing plan to avoid blackouts. Lira backtracked shortly after, though, saying the government would only encourage the "efficient use" of energy.
According to Luiz Augusto Barroso - president of the PSR consultancy and former president of the Energy Research Company (EPE) - the risk of shutdowns in the electricity system is real, due to the water crisis Brazil's was facing, but the government can still take steps to avoid this scenario.
If by the end of 2021 the federal government of Brazil launches an official plan for compulsory rationing of electricity due to the water crisis in the country, this market will be resolved as "Yes".