Energy Transition and Integration in Ibero-American Countries – FGV welcomes PSR and other industry players for this important seminar

Event – 03.10.2019

Held on September 27, at FGV, organized by the Ibero-American Association of Energy Regulators (ARIAE) and ANEEL in partnership with FGV, the International Seminar on "Energy Transition and Integration in Ibero-American Countries" brought together national and international authorities to discuss energy integration in Latin America and the European markets (Spain and Portugal), the energy transition scenario and the challenges of opening the free market, including discussions on the gas market.

The seminar was divided into three panels in addition to the opening, which featured speeches by Minister Bento Albuquerque, Eletronuclear's CEO Leonam dos Santos Guimarães and BNDES' CEO Gustavo Montezano. The big news was the BNDES commitment to the free market expansion and the gas sector infrastructure.

Luiz Barroso participated in the 2nd panel on the Challenges of market opening in the energy transition scenario and highlighted the challenges and needs of regulatory adaptation to accommodate changes in the sector, but with mechanisms that allow accommodating legacies and encouraging innovations. In this panel, the CEO of EPE, Thiago Barral, also stressed the importance of regulation to adapt so that the system's needs can be addressed sustainably. Also, he presented on the criterion of supply and separation ballast and energy, results of the work of the MME's Electric Sector Modernization Group.

Another highlight is the presentation by Adriano Pires (Director of the Brazilian Center for Infrastructure), highlighting the unsustainable "cross-subsidies" between free and regulated markets and the need for gas regulation. According to him, the gas was not "boosted" due to a kind of "chicken and egg" problem: we have no market to boost the infrastructure, but because there is no infrastructure, there is no demand.

In the last panel on the gas market, it was discussed with ANEEL, ANP, and ARIAE about the need for greater integration between gas and electricity and emphasized that the electric sector, through thermals with locational flexibility, can "boost" the gas network internalization (now predominantly concentrated on the coast). Thus, the market begins to discuss the integration of these two sectors and the relevance of the electricity sector in the sustainable growth of the gas market.

Other issues, such as the revision of Annex C of the Itaipu Treaty, the relevance of Brazil to Latin America's energy integration, and the review of DG subsidies were also addressed during the event.