Solar energy generation grows in January 2021, points out CCEE

The entity also points out that the free market has reduced the minimum requirements for free consumers to join
19-02-2021-canal-solar-Geração de energia solar cresce em janeiro de 2021, aponta CCEE

According to data from CCEE (Electric Energy Trading Chamber), photovoltaic energy generation grew by 18.9% in January 2021 compared to the same period in 2020. 

Furthermore, there was an increase of 18% in thermal plants and 98.6% in wind farms - which registered significant growth due to the jump in the source's installed capacity from one year to the next and due to the meteorological scenario that led wind farms in the Northeast region to have lower than expected production in January 2020.

Regarding electricity generation in Brazil, an increase of 1.9% was recorded in January this year compared to the same month last year. 

Previous data already considers the volume of 871.22 average MW of energy imported in the period. 

Free market

Another point highlighted by CCEE is that in January 2021 the free energy market had a reduction in the minimum requirements for free consumer membership from 2 MW to 1.5 MW. 

In total, 739 consumer units, which were already adhered to, ceased to be special and became free. The main advantage, according to the chamber, is the possibility of diversifying the contracting portfolio. 

“Special consumers, who are now agents with demand between 0.5 MW and 1.5 MW, are obliged to purchase incentivized energy, that is, produced by wind, solar, biomass thermal plants or small hydroelectric plants. By becoming free, these agents can buy any type of energy”, explained the CCEE in a note.

Bernardo Marangon, specialist in electricity markets, commented that the reduction in contracted demand limits to release the obligation to purchase incentivized energy follows a schedule until 2024, in which all consumer agents will have the option of purchasing conventional or incentivized energy. 

“After this period, a schedule is expected with a reduction in contracted demand, which allows the migration of units from the captive to the free market, which have a demand of less than 500 kW and perhaps even an expectation of liberalization of the sector for the units low voltage. It will be at this moment, when we will see distributed generation living in the same environment as the free market. That's why it's important to know more about this segment, because in the future everyone will be free”, explained Marangon.

According to the MME Ordinance 514/2018, a further reduction in the minimum requirement for free consumers will occur in January 2022, when consumer units with demand equal to or greater than 1 MW must be classified as “free”. 

The criteria will be reduced once again in January 2023, when loads above 0.5% will become “free”.

ACL migrations

Furthermore, CCEE pointed out that the profile of migrations to the free market at the beginning of 2021 reinforces the growth trend in the volume of smaller consumers entering the segment. 

Of the 167 new ones registered in the ACL (Free Contracting Environment) in January, more than 83% had a load of up to 1 MW. Only 12 were in the range between 1 MW and 1.5 MW. Another 16 exceeded the 2 MW mark.

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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