More optimistic hydrology forecasts used to simulate future scenarios brought down prices
For the week of May 27 – June 6, 2017, the PLD (Price for Settling Differences of the Spot Price) in the southeast/middle-west, south and north sub-markets was set at R$ 118,77 MWh. This is 74.8% less than the PLD in the previous week, and the result of the optimistic flow and rainfall forecasts for the month of June. The price in the northeast differs as the region has reached the limit for energy imports from other regions at the light load level. This led to a 66.6% reduction compared to last week, with the PLD set at R$ 157,33/MWh.
The lower PLD in all sub-markets is primarily the result up the update in the Future Cost Function (FCF) for June. The FCF is one of the parameters used to calculate the PLD, and changed due to high rainfall in the second half of May. The optimistic hydrology forecasts used to simulate future scenarios brought down prices
The weekly PLD is influenced by hydro plant reservoir levels, forecast affluent natural energy and estimates on the use of energy across the country, among other factors.