The Brazilian electricity market has certain particularities that contribute to considerably distinguish it from other markets. With a continental interconnected transmission system in which around 70% of the total installed capacity comes from hydropower plants, this electricity market recently passed through two large institutional reforms and it currently contains a number of special features together with other usual market instruments. Nevertheless, the conciliation between the commercial commitments of the market participants and the physical dispatch is not smooth. Moreover, the Brazilian short-term market is a mechanism to settle differences rather than a market, and the electricity short-term market price and the schedule dispatch are not determined through the interaction between market participants. This paper focuses on these problems, discusses some dilemmas that have to be faced if a more conventional market oriented approach is to be adopted, and proposes a solution in order to address these issues. Pointing towards the enhancing of the flexibility for market participants to bear their contracts, while still ensuring the efficient use of the energy resources and maintaining the current level of the security of supply, this new framework was designed based on a virtual reservoir model.
-This work aims at studying an ideal capacity market model, a free-market competition model that allows all entities to commercialize power. The proposed capacity market differentiates itself from other market models mainly through implementing the possibility of any energy entity to participate. This new model allows a domestic consumer to become consumer and producer of capacity at the same time. This work focuses on the limits of wind penetration in the power network and the creation of a capacity market that allows the commercialization of domestic capacity. It is also addressed the contribution of capacity market for the electrical system and its actors.
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