Brazil and the International Electrical Integration: Background, Current Status and Perspectives

• Published in: Energy procedia Vol. 106; pp. 204 - 214
• Main Authors: de Castro, Nivalde, Brandão, Roberto, Rosental, Rubens, Dorado, Paola
• Format: Journal Article
• Language: English
• Published: Elsevier Ltd 01.01.2016
• Subjects: Brazilian trading model; Electrical international integration; energy commercialization; Brazilian trading model; energy commercialization; Electrical international integration
• ISSN: 1876-6102; 1876-6102
• DOI: 10.1016/j.egypro.2016.12.116

Electrical integration is a topic discussed and promoted worldwide. European countries have created regional electricity markets, while in South American countries the creation of a regional electricity market is still a distant option due to economic and social asymmetries and, especially, because of incompatibilities in the regulatory framework and energy trading mechanisms. This paper aims to analyze the electrical integration process in South America, being Brazil the central focus of the analysis. The main constraints of Brazil's regulatory model are analyzed, highlighting that the last restructuring process of the electrical sector (2003-2004) has defined a commercial model where financial contracts of “physical guarantee” are traded instead of electricity itself, and where the power plants do not have autonomy over their own production. The already existing integration projects are also analyzed highlighting that these projects were developed under special conditions for taking advantage of specific opportunities without the support of a strategic integration policy. Additionally, the paper addresses two other electrical integration projects that are being discussed.