Electricity market design and renewable energy auctions – Brazil country study

The development of renewable energy sources (RES) in Brazil was the outcome of the public policies and regulatory reforms implemented during the 1990s and 2000s. The Brazilian government launched the first institutional reform in 1995 to restore investment capacity and attract private capital to the power sector, after severe hyperinflation and fiscal crises in the 1980s.

This report provides an introduction to Brazil and its power sector; a description and analysis of the Brazilian auction design, including auction volumes, qualification criteria and processes, bidder ranking and winner selection, buyer and seller liabilities and approaches to project derisking and credit enhancement; a reflection on the key lessons learned with the Brazilian experience; and some conclusions.

Renewable Energy
Maurício T. Tolmasquim, Tiago de Barros Correia , Natália Addas Porto