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Electricity market design and renewable energy auctions: The case of Brazil

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  • Tolmasquim, Maurício T.
  • de Barros Correia, Tiago
  • Addas Porto, Natália
  • Kruger, Wikus

Abstract

Auctions have recently become the most widely adopted approach globally to procure renewable energy projects. Countries starting to use auctions often struggle to secure sufficient bidder interest – resulting in limited competition levels and high project prices. Brazil, a pioneer in the use of auctions to stimulate investment in renewable energy projects, offers important lessons on not only how auctions can be designed and implemented to stimulate competition and deliver effective investment outcomes, but importantly also shows how auctions form part of the country's electricity markets and can be integrated in a country's broader institutional and policy framework to ensure long-term success. This paper presents the detailing and specifications throughout the process of contracts and auction design definition to integrate renewable energy sources (RES) into the electrical matrix, from the institutional and procedural side to policy implications of securing the revenue stream and addressing off-taker risk between the sellers and buyers of electricity sector.

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  • Tolmasquim, Maurício T. & de Barros Correia, Tiago & Addas Porto, Natália & Kruger, Wikus, 2021. "Electricity market design and renewable energy auctions: The case of Brazil," Energy Policy, Elsevier, vol. 158(C).
    • Handle: RePEc:eee:enepol:v:158:y:2021:i:c:s0301421521004286
    DOI: 10.1016/j.enpol.2021.112558
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    References listed on IDEAS

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    Cited by:

    1. Diniz, Bruno Andrade & Szklo, Alexandre & Tolmasquim, Maurício T. & Schaeffer, Roberto, 2023. "Delays in the construction of power plants from electricity auctions in Brazil," Energy Policy, Elsevier, vol. 175(C).
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    6. Werner, Deborah & Lazaro, Lira Luz Benites, 2023. "The policy dimension of energy transition: The Brazilian case in promoting renewable energies (2000–2022)," Energy Policy, Elsevier, vol. 175(C).
    7. Luiz Moreira Coelho Junior & Edvaldo Pereira Santos Júnior, 2022. "Space-Time Conglomerates Analysis of the Forest-Based Power Plants in Brazil (2000–2019)," Energies, MDPI, vol. 15(11), pages 1-12, June.
    8. Fellipe Fernandes Goulart dos Santos & Marcus Vinícius de Castro Lobato & Douglas Alexandre Gomes Vieira & Adriano Chaves Lisboa & Rodney Rezende Saldanha, 2022. "A Nash Equilibrium Approach to the Brazilian Seasonalization of Energy Certificates," Energies, MDPI, vol. 15(6), pages 1-13, March.
    9. Ana Werlang & Gabriel Cunha & João Bastos & Juliana Serra & Bruno Barbosa & Luiz Barroso, 2021. "Reliability Metrics for Generation Planning and the Role of Regulation in the Energy Transition: Case Studies of Brazil and Mexico," Energies, MDPI, vol. 14(21), pages 1-27, November.
    10. Lv, Zhike & Liu, Wangxin & Xu, Ting, 2022. "Evaluating the impact of information and communication technology on renewable energy consumption: A spatial econometric approach," Renewable Energy, Elsevier, vol. 189(C), pages 1-12.
    11. Matteo Troncia & José Pablo Chaves Ávila & Carlos Damas Silva & Helena Gerard & Gwen Willeghems, 2023. "Market-Based TSO–DSO Coordination: A Comprehensive Theoretical Market Framework and Lessons from Real-World Implementations," Energies, MDPI, vol. 16(19), pages 1-28, October.
    12. del Río, Pablo & Kiefer, Christoph P., 2023. "Academic research on renewable electricity auctions: Taking stock and looking forward," Energy Policy, Elsevier, vol. 173(C).

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