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DR in Brazil: what's the official lack of credibility cost?

According to the specialized energy news of the electric power sector, there is still no ancillary service agreement signed on account of the DR pilot project, made available for the N and NE regions of the country.

My diagnosis is: 1) the judicialization of the short-term market has an impact on the adhesion since the compensation (settlements) depends on the official power clearinghouse CCEE and 2) the value of the ongoing spot price is very low, not offering attractiveness to the program.

Just to put this in prospective, the CCEE settlements of the month of November of 2017,were USD 3 Billion, of which about only 1/3 were effectively settled. The difference is essentially associated with injunctions granted by the courts.

That is, the official bodies involved have no credibility for potential program participants to join. The risks of not receiving the due values make the decision very difficult. 

On the other hand the program is backed by the value of the spot The ideal would be to offer a value associated with the marginal cost of the expansion of plants that would be dispatched only to meet the peaks. It would thus reflect a future situation to be avoided. And not looking at the present just as in the current model. 

What a pity We remain well behind the really competitive markets around the globe. 


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