abeeolica - Brazil-US Business Council

STRUCTURAL FACTORS (5)Competitiveness FactorsSTRUCTURAL AND SHORT-TERM FACTORS(which explain recent results)• Industry Technical Progress – The Technological Path has beencontributing to the reduction of production costs of the industry´sproduction chain. Ex. Towers of 50m and 100m (11 months -technological changing term).• Wind Favorable Conditions – Comparative Advantage of Brazil, whichcarries potential estimated at 300GW and wind feature much higher thanEurope and the USA (high capacity factor).• Auction and Contract Models (competitive auction with 20 yearcontracts corrected by the National Wide Consumer Price Index - IPCA(fixed income).