Title: Assessing the role of the energy reallocation mechanism and hybrid generation in reducing risks to the Brazilian electricity grid

Authors: Laura Dardot; Marina Barbosa; Thiago Abreu; Benedito Cláudio da Silva; Regina Mambeli Barros; Geraldo Lúcio Tiago Filho; Ivan Felipe Silva dos Santos

Addresses: Federal University of Itajubá (UNIFEI), Av. BPS, 1303, Pinheirinho, Itajubá, Minas Gerais, 37500-903, Brazil ' Federal University of Itajubá (UNIFEI), Av. BPS, 1303, Pinheirinho, Itajubá, Minas Gerais, 37500-903, Brazil ' Federal University of Itajubá (UNIFEI), Av. BPS, 1303, Pinheirinho, Itajubá, Minas Gerais, 37500-903, Brazil ' Institute of Natural Resources (IRN), Federal University of Itajubá (UNIFEI), Av. BPS, 1303, Pinheirinho, Itajubá, Minas Gerais, 37500-903, Brazil ' Institute of Natural Resources (IRN), Federal University of Itajubá (UNIFEI), Av. BPS, 1303, Pinheirinho, Itajubá, Minas Gerais, 37500-903, Brazil ' Institute of Natural Resources (IRN), Federal University of Itajubá (UNIFEI), Av. BPS, 1303, Pinheirinho, Itajubá, Minas Gerais, 37500-903, Brazil ' Institute of Natural Resources (IRN), Federal University of Itajubá (UNIFEI), Av. BPS, 1303, Pinheirinho, Itajubá, Minas Gerais, 37500-903, Brazil

Abstract: Brazil's electricity grid has one of the highest shares of renewable energy resources in the world, at 83%, while the world average is about 22%. The country's energy market is the largest in Latin America and the ninth largest in the world. Since hydro power plays an important role, corresponding to about 65% of the country's energy grid, it is essential to develop mechanisms to mitigate risks of energy supply, through diversification of energy matrix and creating political instruments to minimise hydrological crisis' impacts. In that context, hybrid generation and market intervention mechanisms such as energy reallocation mechanism (MRE) can improve energy supply security. Therefore, this article aims to assess the status of hybrid generation in Brazil and the role of the MRE in the energy market, through exploratory analysis of government documents, national and international technical reports, and scientific articles. In conclusion, this study provides recommendations for developing a regulatory framework conducive for establishing a hybrid generation market in Brazil.

Keywords: hybrid generation; Brazil energy market; electrical regulatory framework; mitigation risks mechanism.

DOI: 10.1504/LAJMSD.2023.132368

Latin American Journal of Management for Sustainable Development, 2023 Vol.6 No.1, pp.60 - 83

Received: 03 Feb 2023
Accepted: 03 May 2023
Published online: 18 Jul 2023 *

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