The year 2024 began with the possibility for all Brazilian consumers in Group A (High Voltage) to migrate from ACR (Regulated Contracting Environment) for the Free Energy Market. Valley change has already attracted thousands of companies medium and small companies – such as industries, service and retail networks – interested in the possibility of negotiating the purchase of their own energy, through short, medium or long-term bilateral contracts, with the suppliers of their choice.
Due to this opening, what has been seen in the country is a gradual growth of the Free Energy Market in relation to the regulated environment, where those who define the prices charged and carry out the supply of energy are the distributors themselves.
This week, data published by ABSOLAR (Brazilian Association of Photovoltaic Solar Energy) reveal that today more than a third of electricity consumption in Brazil (around 37,2%) already comes from the Free Energy Market, as illustrated in the image below:
The study of ABSOLAR, however, shows that in some states the leading role of the Free Energy Market in relation to the captive environment is already a reality or is on the way to becoming one. The survey identified that in Minas Gerais and Pará, the participation of the free contracting environment is already greater than that of the regulated market. In other words, it already represents more than 50% of electricity consumption.
Furthermore, in places such as Paraná, Espírito Santo and Rio Grande do Sul, at least 40% of the local electricity consumption already comes from the Free Energy Market. On the other hand, Acre, Amapá and Rondônia are the states where the share of this market is still timid (less than 10% in each of them) when compared to the percentage in other regions of the country.
When can low voltage migrate?
Currently, the Free Energy Market is available for migration only for medium and high voltage consumers, in the so-called Group A. The opening for smaller consumers (low voltage or Group B) is still being discussed by the MME (Ministry of Mines and Energy), through Public Consultation 137/2022.
The call basically presents a proposal that deals with the full opening of the Free Energy Market starting in 2028. The objective is to allow residential consumers to operate in the free contracting environment starting on January 1, 2028, while low-voltage commercial and industrial consumers can do the same shortly before that, on January 1, 2026.
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Answers of 5
I would like more information about the free energy market
Great news for the energy sector. Brazil is moving towards energy freedom for consumers. I hope this progress continues and that more consumers can benefit from the option to choose their energy supplier.
I have been working in the energy market for some time with the aim of contributing to this reality. I try every day to offer options so that consumers can use clean and economical energy
I believe that the solution to this problem would be for distributors to invest heavily in clean energy plants and thus be able to offer credits in the same way as large suppliers. This is what fossil fuel producers are doing in the face of the growth of electric cars on the market.
Good Morning!
This project really looks like a great option for all consumers, but the question that remains is: How will it be guaranteed that the State energy operator, which we know today, is not only privatized, but also in the power of international private institutions, will it allow energy generated by its competitor to be passed on to the final consumer at a lower cost than the price charged by this energy trading operator, which is also the owner of the transmission means?
Hi, I'm interested in working here in the Enell field, ABCDMRP Paulista region.