Mercado Livre consumers saved R$ 225 billion by 2020

A survey by Abraceel indicated that the ACL corresponds to 72% of the generating park under construction in Brazil
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Consumidores do Mercado Livre economizaram R$ 225 bi até 2020

According to a survey carried out by Abraceel (Brazilian Association of Energy Traders), Mercado Livre consumers saved R$ 225 billion on their electricity bills by 2020. 

Furthermore, the study showed that the ACL (Free Contracting Environment) generated approximately R$ 122 billion last year alone.

Read more: Self-production through asset leasing will be the focus of legal modeling at Mercado Livre

“Such a segment is certainly the future for the expansion of energy generation, and for consumers it has long been a path to cost reduction and greater efficiency,” said Bernardo Marangon, specialist in electricity markets.

“A topic that has been dormant for a long time and is gaining prominence in this sector is self-production of energy, which brings great benefits to the consumer and also to the generator that structures the opportunity,” he added.

Also according to Marangon, this modality, in which the consumer and the generator work in partnership to build a project, is expected to grow significantly in the coming years.

Free market encourages renewable energy

The research also highlighted that 42% of renewable energy generation was carried out on Mercado Livre in 2020 – with solar photovoltaics representing 14% of the energy sold in this segment. 

Furthermore, Abraceel pointed out that the ACL currently corresponds to 72% of the generating complex under construction in the country, which is expected to reach 34.5 GWh by 2025.

ACL migrations

According to the report, Brazil had 8,579 consumers in the ACL in 2020, of which 1,023 were free and 7,556 special – this represents an increase of 22% in the number of consumers compared to the previous year. In other words, 1,652 consumers migrated throughout the year.

Consumer load profile 

Regarding the load profile of consumers who migrated to the Free Contracting Environment last year, the survey indicated:

  • 7% – above 2 MW;
  • 12% – between 1 MW and 1.99 MW;
  • 81% – up to 1 MW. 

Volume and average consumption in ACL

The average volume of energy traded on Mercado Livre was 88,754 MWmed – this represents 65% of all energy traded in the country, a reduction of 9% compared to the previous year, due to the impacts of the pandemic.

The average energy consumption in 2020 was 20,090 MWmed – this represents 32% of all energy consumed in the country, an increase of 14.5% compared to 2019.

Consumer contract duration

Below is the duration of consumer contracts under the ACL last year:

  • Up to 6 months – 5%;
  • From 6 months to 2 years – 29%;
  • From 2 to 4 years – 28%;
  • From 4 to 10 years old – 26%;
  • Over 10 years old – 12%.

Average participation of states

Abraceel also indicated the average participation in Mercado Livre in the states. The leader is Pará, with 53%, followed by Minas Gerais (58%), Espírito Santo (36%), Paraná (35%) and São Paulo (34%). 

Energy freedom ranking

Check out the international ranking of electricity freedom released by Abraceel:

  • 1st: Japan (all consumers);
  • 2nd: Germany (all consumers);
  • 3rd: France (all consumers);
  • 4th: United Kingdom (all consumers);
  • 5th: Italy (all consumers);
  • 55th: Brazil (above 1,500 kW).
Picture of Mateus Badra
Matthew Badra
Journalist graduated from PUC-Campinas. He worked as a producer, reporter and presenter on TV Bandeirantes and Metro Jornal. Has been following the Brazilian electricity sector since 2020.

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