Demand side management in Brazil: Brief history, lessons learned, status, challenges, and trends

Abstract

Given the current context of growing demand for electricity, the dissemination of distributed energy resources, and increased deregulation of the electricity market, consumers are expected to assume an increasingly active behavior in managing their consumption, which places the Brazilian electricity sector at the forefront of a new operational and planning paradigm. Because the demand-side management can be a great ally in overcoming such challenges, the present study seeks to assist in these new challenges by conducting a literature review, accompanied by a critical analysis of Brazilian experiences with demand-side management actions such as daylight saving time, energy efficiency programs, time-of-use tariffs, distributed micro and mini generation, tariff flags, pilot demand response programs, voluntary demand reduction programs, structural demand response programs, and hourly electricity prices. In addition, the current regulatory framework of the Brazilian electricity sector in the context of the energy transition is presented and discussed. The results of this study clearly indicate that Brazil has made important and necessary recent advances in updating its regulatory framework in line with the energy transition process. Undoubtedly, such efforts will elevate demand-side management to an increasingly strategic level in the planning and operation of the country's electrical networks. However, it was found that route corrections must be made aimed at the adequate integration of distributed energy resources, especially regarding the need to improve the tariff schemes applied to the low-voltage consumers. Experimental projects related to the application of new tariffs, which were recently approved by the electricity sector regulator, are promising.