External consultation opens a new stage for the evolution of models in the electricity sector.

The PMO/PLD Technical Committee has opened an external consultation aimed at defining priorities for the next agenda of improving the computational models used by the Brazilian electricity sector.

Contributions can be submitted until August 7th and will serve as input to guide the work of the committee, which brings together the CCEE (Chamber of Electric Energy Commercialization) and the ONS (National System Operator).

The initiative seeks to identify, together with market agents, which topics should receive priority treatment in the evolution of the tools that support operational planning, power plant dispatch, and the formation of the PLD (Price of Settlement of Differences).

The consultation covers suggestions related to methodologies, input data, and parameters used by computational models. The aim is for these contributions to help structure the next development cycle of these tools, at a time of profound transformations in the Brazilian electricity matrix.

Central theme

The opening of the consultation occurs in a context of growing debate about the ability of computational models to represent the operational reality of the electrical system.

The NEWAVE, DECOMP, and DESSEM programs form the mathematical basis used by the sector for decisions ranging from medium-term energy planning to defining the hourly dispatch of power plants and the PLD (Price of Energy in the Spot Market).

While the ONS (National System Operator) uses these models to ensure the safe operation of the system, the CCEE (Chamber of Electric Energy Commercialization) employs them in the accounting and settlement of the short-term market, making them central components for both electrical reliability and commercial transactions.

In recent years, however, the rapid advancement of variable renewable energy sources, distributed generation, and, more recently, the integration of battery storage systems, has led to increasingly frequent revisions of these tools.

Batteries and curtailment

Among the topics receiving the most attention is the adaptation of the DESSEM model to properly incorporate battery-based storage systems (BESS).

With the first auction for battery capacity reserves scheduled for this year, there is a growing need for models to accurately represent the charge and discharge cycles of these devices, allowing for the valuation of their contribution to the operational flexibility of the system and reflecting this behavior in the hourly PLD (Price of Energy in the Spot Market).

Another highly sensitive issue involves the classification of constrained-off events (renewable generation cuts caused by transmission network limitations).

The way these constraints are represented in the models directly influences the allocation of costs associated with generation cuts and remains one of the most relevant debates among generators, operators, and traders.

Also part of the discussions is improving the representation of operational constraints in hydroelectric and combined cycle thermal power plants, so that the models more accurately reproduce the physical limitations of starting, shutting down, and operating these projects.

Real operation

Another important aspect of the evolution of these models concerns reducing the discrepancy between calculated prices and the actual operation of the system.

In certain situations, although models indicate low operating costs due to the high availability of water or renewable generation, transmission restrictions force the ONS (National System Operator) to dispatch thermoelectric plants out of merit order to preserve electrical security.

This disconnect ends up being reflected in the ESS (System Service Charges), increasing the costs borne by the agents.

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