Combinatorial Auction System for Capacity and Energy Products in the Brazilian Electricity Sector

This R&D project aims to propose a new auction system that allows the efficient contracting of the necessary attributes for the Brazilian Electric System (SEB) – especially energy and production backup, in order to guarantee the adequacy of supply and allowing the participation of different generation resources, storage systems, and demand response. The project is divided into five stages: (i) Literature Review, including analysis of international experiences related to multi-product auctions, specifically aimed at the commercialization of electric energy and products related to supply security; (ii) Proposal of a systematic for combinatorial auctions, involving the elaboration of the design, algorithm, and systematic of combinatorial auctions, based on the new market design proposed for the Brazilian Electric Sector; (iii) Development of the computational tool, involving the development of a tool to solve the optimization problem defined in the previous stage; (iv) Workshops, including the holding of three workshops with the objective of disseminating knowledge to internal and external audiences, as well as collecting new visions on the topics; and (v) Technical Report and proposal for the implementation of Combinatorial Auctions, including the consolidation of suggestions for improvements received in the workshops on the proposed design and the need for regulatory adjustments to adapt to the changes proposed in the new auction design.