Framework to structure the Brazilian electricity futures market

Abstract

Purpose This study aims to formulate a mechanism design in the derivatives market, summarizing a framework to set up the Brazilian electricity futures market. Design/methodology/approach This exploratory study formulates a mechanism design in the derivatives market, summarizing a framework to set up the Brazilian electricity futures market. Findings The results show a positive economic outcome for the creation of the Brazilian futures electricity market. Originality/value The main feature in this work is to summarize a framework to set up the Brazilian electricity futures market applying mechanism design, applicable in other countries. The features of the mechanism are the space of expected results (Z), the strategies to survey the environmental space (θ) and the mechanism design – messages space (M).

Operating Model and Estimation of the Insurance Premium for an Energy Futures Clearing House in Brazil

“…Recently, Souza et al (2021) analyzed the economic preconditions for the Brazilian electricity market, perceptions, and expectations of agents about a specific future electricity market, through an exploratory study. In this study, questionnaires were applied to market agents to estimate the perception and expectation of the conditions for the implementation of an electricity futures exchange in Brazil.…”