The transition to a hybrid pricing model – incorporating supply-side elements into the Brazilian design – has advanced to another technical stage. The topic was explored in depth during a round of presentations conducted by PSR and the Chamber of Electric Energy Trading (CCEE), which brought together approximately 30 representatives from the Ministry of Mines and Energy (MME) and guests from the National Agency of Electric Energy (Aneel).
The meeting revisited and detailed the main results of the META II Project – Pricing, completed in December 2025, focusing on the practical application of the recommendations developed throughout the study. The agenda combined conceptual foundations and applied discussions on different market designs – cost-based, supply-side, and hybrid – the principles of pricing in the Brazilian Electric System, and the regulatory challenges associated with the evolution of the current model.
The structural proposals addressed in META II were also revisited, such as ceiling and floor prices, double accounting and ex-post PLD (Price of Energy in the Spot Market), virtual reservoirs and security offers, in addition to international references on accounting formats and mitigation mechanisms. Practical exercises and scenario analyses complemented the discussions, including the impacts of hydrometeorological variables on prices and the use of forecasting tools at different time scales.
As part of the activities, participants carried out a practical exercise with IARA, an interactive software developed within the project to simulate the functioning of the electricity market in different scenarios. The tool allows for the analysis of the strategic behavior of agents, the evaluation of decisions in real time, and the observation of their impacts on prices, generation, and economic results, providing applied support to discussions on the supply-side model.
The meeting is part of the agenda of discussions on the modernization of price formation in Brazil, at a relevant moment for evaluating alternatives for incorporating supply-side elements into the current model.
The meeting revisited and detailed the main results of the META II Project – Pricing, completed in December 2025, focusing on the practical application of the recommendations developed throughout the study. The agenda combined conceptual foundations and applied discussions on different market designs – cost-based, supply-side, and hybrid – the principles of pricing in the Brazilian Electric System, and the regulatory challenges associated with the evolution of the current model.
The structural proposals addressed in META II were also revisited, such as ceiling and floor prices, double accounting and ex-post PLD (Price of Energy in the Spot Market), virtual reservoirs and security offers, in addition to international references on accounting formats and mitigation mechanisms. Practical exercises and scenario analyses complemented the discussions, including the impacts of hydrometeorological variables on prices and the use of forecasting tools at different time scales.
As part of the activities, participants carried out a practical exercise with IARA, an interactive software developed within the project to simulate the functioning of the electricity market in different scenarios. The tool allows for the analysis of the strategic behavior of agents, the evaluation of decisions in real time, and the observation of their impacts on prices, generation, and economic results, providing applied support to discussions on the supply-side model.
The meeting is part of the agenda of discussions on the modernization of price formation in Brazil, at a relevant moment for evaluating alternatives for incorporating supply-side elements into the current model.
