Project META II – Price Formation

This project aims to indicate the main advancements needed to promote economic efficiency in the use of energy resources and in the economic signaling given by the short-term price. Additionally, it seeks to evaluate the advantages and disadvantages between cost-based and offer-based pricing mechanisms in the context of the Brazilian electric sector, based on theoretical analyses, international experiences, and computational tests. Finally, in the event of adopting the offer-based pricing mechanism, the project must indicate in detail the best arrangement for the Brazilian market and highlight the necessary adjustments to the arrangement – both in institutional terms, the commercial and regulatory environment, and the adoption of best practices by companies in the sector.