The full opening of the Free Energy Market in Brazil promises to transform the energy sector, bringing greater competitiveness and opportunities for new business models. However, for this process to occur efficiently and sustainably, there are still a number of regulatory and structural challenges to be overcome.
Pedro Dante, partner at the law firm Lefosse, highlighted some of these points during the 4th edition of Canal Conecta, which takes place until October 23 at the Camargo Guarnieri Cultural Center, in São Paulo (SP).
One of the main challenges is the creation of the Supplier of Last Resort figure, a model inspired by the Texan market that is responsible for serving consumers in cases of default by retail traders.
Migrations to the ACL this year are twice as high as in 2023
Another crucial point mentioned by Dante is the need to discuss free competition and the concept of Open Energy. “It is essential that consumers have full control over their consumption data, allowing them to avoid anti-competitive practices by industry players.”
The specialist also pointed out the importance of separating wire and energy, the need to balance legacy contracts to ensure the economic and financial balance of distributors, regulatory stability and legal security.
Opportunities in the Free Energy Market
Despite the challenges, the full opening of the Free Energy Market brings a series of business opportunities. According to the lawyer, one of the models that should gain strength is the self-production of energy – which is more geared towards retail with the entry of smaller consumers.
Another trend mentioned is the creation of strategic partnerships with major brands, taking advantage of the national recognition of these companies to position themselves as players in the energy sector. This will facilitate the acquisition of new customers, since these are consolidated brands in the market.
“In addition, there is a growing need to prospect new customers – acting as 'partners' to capture new customers – and the increased need for energy production due to the creation of artificial intelligence”, he concluded.
More than 25 thousand retail consumers will migrate to ACL by 2025
Energy trading contracts in the ACL
Donato da Silva Filho, CEO of Volt Robotics, was also present at the event and provided important insights into the dynamics of contracts in the Free Energy Market. According to him, one of the great advantages of this environment is the flexibility in contracting, where the consumer can choose the volume of energy they wish to purchase, in addition to negotiating the price and readjustment conditions.
This flexibility allows different consumption profiles to be met, from those that require a constant load throughout the day, to those that present seasonal variations and specific times.
“There are consumers who have a stable consumption pattern, such as data centers, which consume energy constantly throughout the day and night. But there are also those who have consumption peaks at certain times or months of the year,” explained Donato. This variety of profiles requires precise negotiation to adjust the characteristics of the energy delivered to the needs of each customer, always for a specific period, whether 5, 10 or even 15 years.
The executive highlighted that, despite the flexibility, the contracts require rigorous risk management, including clauses to deal with default, price adjustments and possible delays in infrastructure works.
“If there are gaps in the financial flow, this can directly impact the energy supply. Therefore, it is essential that negotiations are clear and well-defined,” said the director of Volt Robotics. He concluded by emphasizing the importance of good legal planning to ensure the viability of contracts and the safety of all parties involved.
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