Brazil’s energy market is undergoing significant transformation, driven by ongoing market liberalisation, the rapid expansion of intermittent renewable energy sources, and record-breaking peak demand. The country’s second capacity reserve auction, scheduled for later this year, marks a shift in strategy by including new capacity from existing hydro assets, moving away from the previous focus on thermal generation. This evolving framework is crucial for ensuring energy security and supporting Brazil’s decarbonization goals, as energy market price signals alone have proven insufficient to guarantee reliable supply.
As Brazil navigates this complex landscape, the design and regulatory framework of these auctions will play a pivotal role in shaping the future technology mix, potentially accelerating the adoption of emerging technologies like storage.
Access this public report to answer the following questions:
- What are the key design parameters for establishing capacity markets, and how do they influence outcomes?
- What are the similarities and differences between existing capacity markets internationally, and what insights can be applied to Brazil?
- What role can storage assets play in capacity auctions, and how can the design of the market ensure their contribution to security of supply and decarbonization efforts?
If you have questions please get in touch with Priscila Vellano.
