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Spotlight: Brazil’s new electric power regulatory agenda

Bnamericas Published: Friday, November 04, 2022
Spotlight: Brazil’s new electric power regulatory agenda

Among the main issues Brazil’s electric power watchdog Aneel addresses in its 2023-24 agenda are regulatory enhancements for power commercialization in the free (non-regulated) market and distributed generation, offshore generation rules, access of renewable energy generators to the transmission grid and insertion of energy storage systems in the national power grid.

BNamericas provides an overview of the topics.

Market opening 

– Improve retail commercialization regulation 

Transmission system access 

– Improve regulation associated with contracting of the use of the transmission system

– Regulate access to transmission in a scenario of expansion of renewable generators 

– Regulate land use around power substations

Distribution

– Evaluate actions to increase consumer satisfaction

– Establish national standardization of the consumer unit code

Transmission

– Improve the regulation on reliability criteria in the transmission system

Innovation and energy efficiency for transmission 

– Regulate the social renewable energy program, aimed at low-income consumers

– Establish criteria for recognition of research institutions by Aneel for receiving resources from the regulated R&D program

– Regulate the conscious consumption campaigns

Generation 

– Promote regulatory adjustments for the implementation and exploration of offshore plants 

– Establish the operational criteria for the reduction or limitation of generation 

– Regulate the "constrained off" of PV solar and hydroelectric generating plants

Distribution and transmission rates

– Regulate the modernization of distribution and transmission rates

– Regulate rate sandboxes

Modernization of the distribution segment

– Improve the normative resolution that deals with distributed micro and mini generation

– Execute work plan for energy transition and modernization in the distribution segment    

– Establish measurement systems for energy transition and modernization in distribution    

– Establish guidelines for experimental regulatory environment programs (regulatory sandbox) in the electric power sector

New business models

– Improve the regulation of the provision and remuneration of ancillary services in the national grid. Ancillary services ensure the electric system works adequately. Among the examples is the speed control of generating units to maintain or restore the frequency of the system when there is an imbalance between load and generation. 

– Promote regulatory adjustments for the insertion of energy storage systems in the national grid    

Quality in service rendering

– Improve the quality regulation associated with the transmission functions in alternating current 

Market security 

– Improve the regulation of the financial guarantees in the short-term market

– Improve monitoring of the electric power market

Sector security

– Improve the normative resolution that deals with the criteria and procedures for the programming of the operation and formation of the PLD short-term price index

Regulatory treatment for responsive surveillance

– Study the feasibility of making public the procedures used to inspect the electric power sector

– Study the feasibility of expanding the use of standardized and objective criteria in the dosimetry of punitive processes 

– Study the feasibility of standardizing the parameters used in the development, monitoring and finalization of results plans    

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