The Energy Regulation and Markets Review - Stikeman Elliott

Brazil
In view of the specifics of the Brazilian electric power system the ONS takes into
account the most appropriate power generators to be dispatched in view of eventual
transmission restrictions or low volume of the reservoirs of hydroelectric plants. The cost
of the dispatch of a different power plant is borne by all the agents as a charge of the
electric system.
Moreover, certain power generators are constantly adopting new technology to
improve their efficiency, which increases their physical guarantee and consequently may
allow for the sale of a greater volume of energy.
iii Technological developments
Besides the progress of the solar energy technology, and the competitiveness of wind power
projects in Brazil, the use of methane thermal power plants are also being studied,which
results from the landfill and swine dejects, without economic destination. As a result,
these projects may be part of an environmental solution against the methane pollution.
VI
THE YEAR IN REVIEW
ANEEL has already confirmed that will perform at least two energy auctions in 2012.
The first is expected to be held on 28 July. It will grant a three-year period for the
construction of the plant (‘A-3’). For the A-3 auction, there are registered generation
projects dealing with wind, gas thermal, biomass, PCHs and hydroelectric power plants.
The second auction is expected to be held on 16 August, which will grant a fiveyear
period for the construction of the plant (A-5). The term for the registration for this
auction is not yet finished.
It can be seen that ANEEL is maintaining its policy of promoting the expansion
of Brazilian power capacity, an expansion requiring investment from the private sector
in the new generation of power plants and transmission lines and serious long-term
governmental planning.
VII
CONCLUSIONS and OUTLOOK
In view of the current structure of the BPS, the government needs to continue to promote
the expansion of the national power capacity in order to cope with the growing power
demands of Brazilian industry and other power consumers.
In this scenario, new investments will be required in next-generation plants and in
transmission lines, to guarantee competitive power supplies at low costs, and delivering
attractive opportunities for the private sector.
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