Brazilian Electricity Sector Research Articles

SERVICE QUALITY IN FRONTIER-BASED BENCHMARKING MODELS: A PROPOSAL FOR BRAZILIAN TRANSMISSION SERVICE OPERATORS BY LITERATURE REVIEW

This study investigates the incorporation of service quality into frontier-based benchmarking models, focusing on Brazilian Transmission Service Operators (TSOs). Service quality is a critical variable in the regulatory context, as it directly reflects operational efficiency and consumer impacts. However, benchmarking models adopted in the Brazilian electric transmission sector, particularly those proposed by ANEEL for the 2017-2022 tariff review cycle, still exhibit gaps in the effective inclusion of quality proxies. The research is grounded in a systematic literature review conducted across the Web of Science and SciELO databases, covering studies published between 2000 and 2023. Articles discussing the integration of quality into benchmarking models were analyzed, with emphasis on methodologies such as Data Envelopment Analysis (DEA) and Stochastic Frontier Analysis (SFA). Data analysis included 32 Decision Making Units (DMUs) from Brazilian TSOs, covering the period from 2013 to 2016, based on ANEELs Technical Notes 160/2017 and 164/2017. Results indicate that service quality, when represented as a monetary variable, is most effective when incorporated as an input to adjust operational costs. The research highlights that ANEELs proposed model for the 2017 tariff review still lacks a consistent methodology for fully integrating service quality into benchmarking processes. The study concludes that adopting more robust proxies, such as the Parcel Variable (PV), could enhance the accuracy of efficiency assessments and ensure that TSOs meet appropriate performance standards, aligning with international best practices. This research contributes theoretically and practically to the ongoing debate on the optimal integration of service quality in regulated industries benchmarking models.

A holistic analysis of environmental impacts and improvement pathways for the Brazilian electric sector based on long-term planning and life cycle assessment

Brazil presents a high share of renewable electricity generation, mainly due to its favorable hydroelectric potential. However, reports estimate that demand will grow substantially in the long term, requiring a significant diversification of the electricity mix. In this context, this paper analyzes how the environmental impacts of electricity generation tend to change over the horizon 2025–2050 in Brazil and identifies improvement opportunities accounting for environmental and economic factors. To do so, the Open Source Energy Modeling System (OSeMOSYS) is applied to estimate the composition of the electricity mix in 2050. Then, life cycle assessment (LCA) is used to evaluate the associated environmental impacts across ten categories. Lastly, hybrid weighted ɛ-constraint multi-objective optimization (MOO) is employed to evaluate which sources can be used to minimize climate change and the levelized cost of electricity while ensuring that other categories are reasonably restrained. The results indicate that the environmental performance of the Brazilian electricity matrix tends to deteriorate substantially, both when analyzing overall impacts and impacts per kWh. Moreover, the proposed MOO approach suggests that some sources, mainly hydropower, onshore wind, and centralized PV present an all-around economic/environmental performance and might be favorable for expanding the power system.

Corporate governance and innovation: a predictive modeling approach using machine learning

The examination of the associations between internal corporate governance (CG) mechanisms and innovation faces challenges due to nonlinear patterns and complex interactions. Consequently, existing literature rarely reaches a consensus on the directions or strengths of these relationships. Furthermore, to investigate the CG–innovation association, prior research has predominantly relied on explanatory modeling, which involves applying statistical models to data to test correlational or causal hypotheses about theoretical constructs. These are the reasons why it remains unclear whether internal CG mechanisms, when considered collectively as an extensive array of interconnected variables, offer valuable insights for accurately predicting innovation. To address this gap, we analyze a dataset of research and development (R&D) projects from the Brazilian electricity sector by employing predictive modeling, which entails using statistical models or data mining algorithms to predict new observations, particularly using supervised machine learning (ML) methods. Our study demonstrates that a comprehensive set of variables representing internal CG mechanisms significantly enhances the predictive capabilities of ML algorithms for innovation. Furthermore, we illustrate how ML can illuminate nonlinear and non‐monotonic patterns, and interactions among variables, in the CG–innovation relationship. Our contribution to the literature encompasses three key aspects: introducing a predictive modeling approach to the discourse on the role of CG in innovation attainment through R&D endeavors, which can complement and enrich existing explanatory research; investigating non‐linear and non‐monotonic relationships, as well as interactions, in innovation prediction; and affirming the emerging body of literature that recognizes supervised ML as a valuable tool accessible to management researchers.

Indicators and performance requirements for suppliers’ evaluation in the Brazilian electricity sector

Objective: This paper presents a conceptual model comprising performance indicators designed for evaluating suppliers in companies within the electricity sector. Design / Methodology / Approach: The conceptual model was developed based on articles identified from Scopus and Web of Science, which provided indicators and their associated requirements, validated by both academics and practitioners. A multiple case study method was applied, and interviews were conducted with nine participants from six leading companies, which had the highest revenues in the electricity sector in Brazil. The interviews were semistructured and administered remotely. For data analysis, the authors assessed the alignment of the the indicators with the essential requirements for suppliers' evaluation. This evaluation was carried out using the Lawshe’s (1975) scale, the Content Validity Ratio (CVR), and the critical CVR (Wilson et al., 2012). Results: The conceptual model consists of tree groups of indicators: quality, logistics, and financial. In public companies, the evaluation facilitated external integration, whereas in private companies, this evaluation enabled internal integration. The findings show that some indicators were not applicable to the practice, while all requirements were applicable within the context of both academics and practitioners’ reality. Limitations of the investigation: A notable limitation of this study is the relatively small number of interviewees, particularly within the academic sample. Practical implications: The proposal of these indicators aims to guide companies to a more precise supplier evaluation by procurement and operation departments, which manage a valuable input (spare parts). Originality / Value: The proposal of indicators that meet the requirements, using the Lawshe’s scale and the calculation of the CVR, and further validated by two different actors (academics and practitioners) was not found in the publications concerning suppliers’ evaluation in the electricity sector.

Arbitragem e energia no Brasil

The electric industry encompasses the segments of energy generation, transmission, and distribution. It comprises intensive infrastructure investments and energy commercialization. Events related to energy transition and the integration of disruptive technologies have altered the sector’s landscape, requiring system flexibility and increased regulatory proactivity. Additionally, it demands structural, operational, and market changes. The sector is disruptive in terms of governance and operational, market, and legal aspects. In the 2000s, the introduction of competitive areas in the electric industry was the first step towards the use of arbitration, driven by regulatory reforms and in response to the country’s energy crisis, which also led to the first arbitration in the Brazilian electric sector involving the Public Administration. Law nº 10.848/2004 currently makes arbitration mandatory in energy trading contracts managed by the CCEE. Arbitration also finds space in other forms of energy negotiation, such as contracts for mini and micro-distributed generation and energy derivatives. The context of modernization increased renewable energy production and market opening create opportunities for arbitration expansion. There is also potential for further development in enabling relationships of capital-intensive electric industry activities. The paper provides data on the state of the art of these contracts in the Brazilian electric sector, indicating under what circumstances arbitration could enhance governance in the industry.

Customer Satisfaction with Public Services: An Analysis of the Impacts of Public Policies in the Brazilian Electricity Sector

Customer Satisfaction with Public Services: An Analysis of the Impacts of Public Policies in the Brazilian Electricity Sector

Analysis of the social indicators of companies in the brazilian electric power sector: a panel data approach

The present research delves into the realm of Internal Social Indicators (ISI), aiming to scrutinize and ascertain the influence of independent variables on ISI behavior within the Brazilian electric sector. The study period spans from 2013 to 2016. To achieve the research objective, an in-depth analysis of secondary data sourced from the websites of selected companies was conducted. Specifically, sustainability reports, with a focus on social reports (BS), were examined. The findings of the proposed model reveal that companies exhibiting higher investment in ISI tend to enjoy better asset profitability and maintain lower levels of indebtedness. The practical applicability of this research lies in its relevance to human resource management. It aids in identifying companies that allocate significant resources to ISI, thereby facilitating the assessment of their relationship with economic-financial indicators—whether positive or negative. Such insights pinpoint companies that excel in this aspect, offering a distinctive factor for evaluation by actuaries, employees, and stakeholders. By shedding light on the correlation between investment in ISI and financial performance, this research equips decision-makers with valuable information for strategic planning and resource allocation. Moreover, it underscores the importance of social responsibility within the corporate landscape, emphasizing the role of companies in contributing positively to society while achieving financial success. In essence, this study serves as a bridge between social impact and financial outcomes, advocating for a holistic approach to corporate management that prioritizes both profitability and social welfare. Its implications extend beyond the Brazilian electric sector, resonating with businesses worldwide that seek to balance economic goals with ethical and social considerations.

Seasonal pumped hydropower storage role in responding to climate change impacts on the Brazilian electrical sector

Since Brazil's major energy resources are renewable and directly related to climate factors, it is among the countries most likely of being affected by climate change. Given Brazil's high hydropower storage capacity and the strong seasonal patterns of its renewable resources, introducing Seasonal Pumped Hydropower Storage (SPHS) can help mitigate these challenges. To this end, a methodology is proposed that links the dynamic system-optimization model – MESSAGEix - to regional climate model simulations, called the Brazilian Electricity System MESSAGEix Model (BESMM). This model, with its detailed hydropower representation, is capable of integrating data from three climate change scenarios with the country's energy system. Climate change introduces a new dimension to this approach, as there is evidence of increasing the seasonal imbalance of variable renewable resources in Brazil. BESMM results suggest that SPHS can play a fundamental role in achieving a 100 % renewable matrix by 2100 in RCP 2.6 scenario, as well as enhancing the renewable energy endowment in scenarios RCP 4.5 and RCP 8.5. A reduction of up to 68 % of CO2 emissions is predicted in scenarios incorporating SPHS, compared to scenarios without SPHS.

The critical drivers of the Brazilian electricity sector's transition through 2050: A Delphi study

This work presents 21 critical drivers influencing the transition of the Brazilian electricity sector through 2050. The information is processed using a two-round Delphi method involving experts from government, regulated companies, service providers, and academia. Statistical analysis revealed expert consensus, and stability was achieved between inquiry rounds. The European Union and China emerged as the primary external sources of influence, with policies and regulations identified as the main risks. Additionally, the importance of Brazil's accession to the OECD is on par with other critical drivers. The gathered evidence can provide valuable data and insights for policymaking, regulation, and future studies.

COMPETITIVENESS ASSESSMENT WITH THE IMPLEMENTATION OF AN ENERGY CAPACITY MARKET IN BRAZIL

Purpose: This article investigates issues related to the need to implement a capacity market in the Brazilian electricity sector to add security to the system and increase market competitiveness to benefit its energy consumers, as well as attract investments to the supply segments of this industry. Theoretical Framework: This research focuses on the Market Design Theory and the transition to the capacity market, detailing its principles and relevance in the current context. Through it, we seek to understand the mechanisms that shape the contemporary market. Design/Methodology/Approach: This research adopts an applied research approach. It is structured as a case study, where Brazil is analyzed in the context of implementing a capacity market. Techniques such as interviews, and documentary research were used to collect data. Findings: The study delves into the intricacies of establishing a capacity market in a competitive environment. The central findings encompass distinctions between the separation of backing and energy versus the capacity market; the blueprint of the auction and regulation of contracting; shaping the long-term market perspective; and the methodology for deducing the capacity market demand. Research, Practical & Social Implications: This article contributes to the literature by surveying cases on capacity market development in developed countries. Furthermore, as a practical contribution, it details the benefit of implementing a capacity market in the Brazilian case. Originality/Value: This research provides innovative solutions for Brazil, drawing from global benchmarks and tailoring them to Brazil's unique challenges and recent legal changes.

Energy Efficiency and Distributed Generation: Case Study

The challenges and opportunities of the Brazilian electric sector show the necessity of the diversification of the energy matrix with other renewable energy sources, to attend the growing demand and improving energy security. In this context, energy efficiency and distributed generation represent an important purpose to meet the challenges related to the growing consumption of electricity in Brazil and to mitigate its impacts. The emphasis given in this work is the preparation of a project of energy efficiency with the implementation of a photovoltaic plant in a teaching and research institution, subject to the guidelines established by the National Electric Energy Agency - ANEEL. The results show that the energy saved and the reduction in peak demand, as well as the installation of the photovoltaic plant, will make the facility self-sufficient and result too improvement in the power quality parameters.

How can organizations measure the integration of environmental, social, and governance (ESG) criteria? Validation of an instrument using item response theory to capture workers' perception

AbstractEvaluation of corporate sustainability parameters has become part of organizational management. Item Response Theory (IRT) serves as a valuable approach for quantifying and exploring observable variables associated with these parameters. Therefore, this article aims to propose, apply, and validate an instrument utilizing IRT to measure environmental, social, and governance (ESG) impacts on corporate sustainability performance, using the perspective of workers. Workers were chosen as key stakeholders for the present study, as they were pointed by previous research as central to corporate sustainability decisions. The present paper addresses a literature gap by introducing, implementing, and validating a research instrument, along with a comparative scale, to assess the effects of integrating ESG criteria on corporate sustainability performance. Workers of two major Brazilian electricity sector companies were respondents for this instrument. Multigroup IRT method was used to assess item discrimination and difficulty levels, and to construct a scale reflecting workers' perceptions of integrating ESG criteria. The questionnaire consisted of 15 items, demonstrating Content Validity Coefficients (CVC) above .97, confirming the instrument's content effectiveness. Cronbach's Alpha and McDonald's Omega were greater than .94 for both companies. Questionnaire items demonstrated satisfactory discrimination ability and varying difficulty levels, resulting in a five‐level scale to gauge the impacts of ESG criteria. This research contributes through the introduction and validation of the research instrument, the latent trait assessment scale, and the evaluation of workers' perceptions regarding ESG criteria impacts on corporate sustainability performance. In conclusion, the proposed instrument showed robust psychometric properties, displaying favorable reliability and validity parameters. It effectively measures the impacts of ESG criteria, providing interpretable levels aligned with the unique characteristics of its constituent items

Competitive changes and innovation practice: Analysis of R&D policy on the Brazilian electricity sector

The electricity sector is in the midst of structural changes accelerated by current trends such as digitalisation, decarbonisation, and decentralisation. This phenomenon led companies to explore new ways of innovating. However, some experts and practitioners argue that the current R&D regulation may limit strategic advancements. This paper aims to analyse the current R&D policy on the electricity sector in light of digital innovation efforts. The study focuses on the Brazilian regulatory framework for R&D activities, which has been evolving since the early 1990s. Therefore, the study presents a multiple case analysis of different projects aimed at innovation through digitalisation, highlighting the main bottlenecks and their relationships with the regulatory structure. The paper contributes by presenting a timeline of R&D regulatory changes within the Brazilian electricity sector, discussing the recent innovation movements, and detailing an organised structure on regulatory constraints and practical consequences, which could be useful when developing new policies and practices on innovation for energy sectors.

The electricity market in Brazil: A multilevel perspective of sector agents for liberalization to residential consumers

The Brazilian electricity market is in the liberalization phase, and residential consumers are not yet allowed to access the free energy grid, having only the option of buying energy from the regulated market at government-regulated tariffs. This study investigates the barriers that hinder the liberalization of the free energy market in Brazil, the role played by each agent in the transition, and the drivers for the participation of residential consumers in this market. Fourteen semi-structured interviews were carried out with experts from the Brazilian electricity sector; findings were analyzed from a multilevel perspective and discussed in light of the literature. Results showed that the free energy market should operate through the interaction of the system levels, i.e., governmental, market, and societal. However, there are still barriers to be overcome, most remarkably the market's complexity, lack of investments in technologies and accessible information, instability in prices paid for the energy, and the population's lack of knowledge about the free market. As for consumers, they should be motivated by the search for more affordable prices, alternatives from renewable sources, and better contractual conditions. Our study provides perspectives and recommendations to assist in designing strategies to liberalize a complex market with unique characteristics.

CONTRATAÇÃO DE ENERGIA ELÉTRICA NO MERCADO LIVRE

Brazil, during the 90's, underwent important changes in the Brazilian Electric Sector (SEB). During the administration of President Fernando Henrique Cardoso was created the Project of Restructuring of the SEB (RE-SEB), what introduced the concept of competition and free market of electric power. This concept moved the energy market of Brazil and companies had to reinvent themselves to conform to this type of contracting in order to reduce their costs. Thus, this work has a purpose to support the decision to purchase energy for Free Consumer, which aims to invest in energy contracts to minimize costs.

A Novel Remaining Useful Estimation Model to Assist Asset Renewal Decisions Applied to the Brazilian Electric Sector

Assets deteriorate over time, as well as being covered, corroded, or becoming old in less obvious ways. Maintenance can extend the remaining useful life (RUL) of an asset system, but sooner or later it must surely be replaced. In this study, we propose a new RUL estimation methodology to assist in decision making for the maintenance and replacement of assets from prioritizing equipment in a renovation plan. Our methodology uses advanced data analysis techniques that consider multiple competing criteria with the goal of maximizing values of the asset throughout its life cycle, while considering the rules of remuneration and service quality of the current regulation, as well as the values at risk according to the decisions and actions taken. Experimental results with real datasets show the efficiency of the proposed approach. Finally, this work also presents the development of an analytical tool to optimize asset renewal decisions applying the RUL estimation methodology proposed and its application to the Brazilian electric sector.

Assessment of the innovation level of the brazilian electric sector's (SEB) RD&I program

The purpose of this article was to estimate the degree of innovation in SEB's RD&I program, and to assess the current status of the program in terms of the concept of the missing link of innovation or valley of death of innovation. The methodological procedures adopted were qualitative and exploratory, with mixed methods, including bibliographic and documental research and field research applied through a questionnaire in electronic form. Forty-eight questionnaires were answered from a population of 140 R&D managers and researchers from the SEB. The results obtained in the documental research indicate that Brazil is in an uncomfortable position in the Global Innovation Index (GII) ranking. It occupied the 47th position in 2011, and in 2021, it was 57th. It is 4th in the Latin America and Caribbean (LAC) Top 5 and among the BRICS; it is in the last position. The Innovation Efficiency Index (IEI) was 0.92 in 2011 and in 2021 it was 0.55. As for the Innovation Intensity Index, Brazil has only one company from the electricity sector in a ranking with 2,500 organizations. The evaluation of the RD&I maturity of the SEB revealed that it is a grade 3 ecosystem, under development. The estimation of the technological readiness level of the SEB showed that only 12.50% of the surveyed companies evaluate using the Technology Readiness Level (TRL) or Manufacturing Readiness Levels (MRL) scale, 47.92% do not evaluate TRL/MRL, and 39.58% evaluate, but remain in the initial stages. The analysis of the missing link of innovation leads to believe that the vast majority of projects of the RD&I of the SEB are plunging into the valley of death of innovation. It remains as a suggestion for research the formation of research networks in the SEB and the implementation of open innovation with the inclusion of startups.

Identificação de Prioridades Através do Método de Estruturação de Problemas Para Reduzir as Dependências dos Serviços Ecossistêmicos na Distribuição de Eletricidade

Abstract Electricity distribution is a fundamental activity for society. However, mitigating actions on risks and dependencies of this activity still need to be discovered concerning Ecosystem Services (ES). This fact can negatively influence its prosperity, especially in the long term. Within this context, this paper aims to identify actions that mitigate the risks and dependencies on ES associated with a company in the electricity sector in Brazil that performs electricity distribution services. The identification was based on the collection, analysis, and interpretation of stakeholders’ perceptions of the activity through an adaptation of the Strategic Options Development and Analysis (SODA) problem structuring method. As a result, a structured vision of actions that mitigate ES risks and dependencies of electric power distribution, enabling management focused on the longevity of both the ES and the economic activity.

Procedimento para avaliar e comparar modelos de geração de cenários sintéticos de vazões

ABSTRACT Synthetic streamflow scenario generation is particularly important in countries like Brazil, where hydroelectric power generation plays a key role and properly handling the uncertainty of future streamflow is crucial. This paper showcases a collaborative effort within the Brazilian electrical sector to enhance streamflow scenario models, focusing on horizons up to one year. Five institutions proposed diverse methodologies, and their effectiveness was evaluated using a comparative framework. The results reveal the strengths and areas for improvement in each model. GHCen emerged as the top performer, excelling in both short-term and moving average analyses, while the PARX model demonstrated superior performance in specific regions. The PAR(p)-A, which is the official methodology in Brazil, was the second-best model in the moving average analysis. This research offers valuable insights for countries facing similar hydrothermal scheduling and scenario generation challenges.

Proposals to improve the demand response in Brazil

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.