Officials from the electricity sector and representatives of market companies will gather on Wednesday, October 18th, in São Paulo, to discuss the formation of electric energy prices at the “Meta II Price Formation: Perceptions and Determinants” workshop organized by the Chamber of Electric Energy Commercialization (CCEE) and PSR Consulting Solutions. Although in-person registrations are closed, the event will be live-streamed, and you can register via the following link: https://www.meta2formacaodepreco.com.br/.

This event marks the first of its kind within the scope of the “Study on the short-term electric energy price formation: an analysis of the Brazilian market.” The project will evaluate potential enhancements to the current electricity pricing model in the country and compare the benefits and challenges of its potential replacement with alternative approaches.

The event is part of the broader “Meta II” program, established by the International Bank for Reconstruction and Development (IBRD) and the Ministry of Mines and Energy (MME), with an approximate investment of $38 million in dozens of initiatives. It reinforces the ministry’s role in coordinating efforts, since participants do not provide financial contributions and collaborate with the ministry. The CCEE, in particular, received a budget of R$33 million for a total of four projects, and in May of this year, it signed a contract with PSR for the execution of this Price Formation project.

With a duration of 30 months, the project aims to identify the best arrangement for the Brazilian market, including necessary adjustments in the commercial and regulatory environment, and best business practices. The work also involves an analysis phase of the current cost-based price formation mechanism, which should highlight the necessary advancements to improve operational efficiency and economic signaling associated with computational models.

The research should also present a comparative analysis of the advantages and disadvantages between cost-based price formation and offer-based price formation. It will involve the development of software capable of simulating the consequences of different regulatory strategies on the system.In addition to this initial workshop, various events have been planned throughout the project’s duration, ensuring public engagement in crucial development phases.

You can find the schedule for the workshop on the project’s portal:
https://www.meta2formacaodepreco.com.br/eventos