A hug (Brazilian Association of Energy Traders) announced, last Wednesday (03), that Mercado Livre grew 19% in 12 months. In total, there are already 28.575 consumers.
Given this scenario, Brazil has 471 energy traders, responsible for negotiating 63% of the electricity sold on Mercado Livre and 36% of all energy traded in the country.
There is no doubt that the segment is growing. But what can we do to continue at this pace? What are the next steps and what adjustments are necessary, in addition to the regulatory points?
For Moisés Cona, director of GRI Infra, a networking group for the infrastructure sector, the regulatory advances of opening should have direct consequences in two spectrums of the electricity sector: technological advances and innovation and in the bankability of projects.
“Today, the expansion of renewable generation takes place via the Free Market, and not through the Regulated Market. However, the expansion of the new generation will be difficult to finance if there is no consumer market,” he said.
“Therefore, the continuity of the financial sector’s appetite for renewable projects is directly related to the continuity of the generation supply and the market opening schedule, so that it can expand the consumption base and generate clarity for agents”, explained Cona .
From the perspective of technological advances, he stated that there are a series of developments that should encourage companies to work to ensure their competitiveness in the ACL (Free Contracting Environment).
“There is also more space for the use of energy storage, in which batteries can be used as an option for transmission at certain times”, he highlighted.
“Another factor that has been favoring the adoption of renewable sources, and which should have effects in this regard on the free market, is the drop in the price of lithium-ion batteries over the years”, added the executive.
Therefore, in his view, the challenges in this area include regulatory modernization and the expansion of the transmission line network to integrate the generating regions with the consuming regions.
Increase of 19% in 12 months
According to the director of GRI Infra, decentralization and customer empowerment is a topic that has long been discussed in the electricity sector, and the 19% growth in the last year of the ACL reflects the power of choice given to users, who are now able to exercise fully understand their consumer rights: “the right to quality of services, the right to lower prices, and, most importantly, the right to options”.
“In this way, factors such as a broader and more qualified supply chain, a competitive cost, an auction schedule for renewable energy, with significant growth in wind power, as well as more financing options at attractive rates of return and the possibility of synergy between solar and wind, contribute to this advancement”, he reported.
Mercado Livre consolidates itself as a driver of renewables
Abraceel data also showed that Mercado Livre absorbed 66% of the energy generated by biomass plants, 59% by PCH, 47% by wind and 34% by centralized solar – compared to 16% a year ago.
Amid this scenario, Moisés Cona emphasized that the participation of renewable sources in the composition of Brazil's energy matrix has, year after year, gained strength and positioned itself as a means of expansion and security for the Brazilian electricity sector.
“One of the most recent innovations in the segment was the implementation of the Difference Settlement Price on an hourly basis, which is the price reference for contracts signed within the scope of the ACL”, he commented.
“This mechanism of sophistication in price formation was a great evolution for solar photovoltaics, which generates energy precisely during the period of the day when there is greater consumption”, he pointed out.
According to the expert, peak consumption moments, traditionally between 11 am and 17 pm, are times when solar energy contributes to alleviating the system's greater demand, and which, through the Hourly PLD, allows the value of electricity to be accounted for. more clearly: at times when demand is high (during the day), prices that reflect this consumption.
“The mechanism also tends to make photovoltaic energy more competitive as the cost of implementing solar panels decreases. It is already the cheapest technology for generation, in addition to having abundant availability in the country”, concluded Cona.
