The result of the Reserve Capacity Auction (LRCAP) has generated criticism for a simple reason: the effects on electricity costs for consumers (business, institutional, and residential) will be significantly increased in the long term.
The central question is: why was this auction necessary?
The answer is quite simple! The national integrated system (SIN) needs reinforcement at the on-peak hours. But.... why?
The intensive incentive for non-firm energy sources like solar and wind, without the requirement for mitigation (such as batteries, for example) associated with each project, is a central issue.
The SIN requires reinforcement and, without ceremony as always, the electricity sector decided to do what it always does: include an investment without meritocratic cost allocation to be shared by all consumers. And so, Brazil continues to lag behind the market.