Proposals to improve the demand response in Brazil

Abstract

The gradual commercial opening of electricity markets to keep pace with technological evolution and promote the active participation of players to increase their efficiency is recognized as one of the best practices in most developed markets in the world. The same principle applies to the Brazilian electricity sector, which increasingly demands intelligent mechanisms that serve as instruments to optimally face the increasingly complex challenges. Demand response (DR), a mechanism not widely used in Brazil, can offer many advantages to the electric system, such as increasing its competitiveness and improving the reliability of the electric energy supply through the active participation of the energy consumer. This study presents different paths and proposals by which the load side can contribute to increased energy security and avoid the increase in the system operating costs in Brazil. This study tracks the progress of the DR programs adopted in several international markets, observing their remuneration for the services provided to the electricity system, as well as the motivation of the operator, utilities, or market administrator to offer programs that allow the participation of consumers, resulting in benefits for the participant, programs, and system.