OPTIMAL ALLOCATION OF TUST FOR GENERATORS AND DEMAND: "A PIECE OF CAKE"?

OPINION

In this issue we analyze the main methods of transmission costs allocation and we argue that the AS scheme corrects known and significant limitations of the Nodal methodology currently adopted in Brazil. We also warn that some of the proposal now in Consultation, to strengthen the locational signal of the current Nodal methodology, can lead to distortions of the same.

REGULATIONS

In this issue we comment: (1) Bill No. 9463 which deals with the privatization of Eletrobras; (2) Provisional Measure No. 814, which will not be voted and will lose its validity; (3) MME Public Consultation No. 45, on the proposal of Structural Reduction Plan of the CDE expenses; (4) ANEEL Public Consultation No. 007 on the pilot project of Energy Efficiency Auction; (5) Ordinance No. 159, which presents a new treatment for marginal contracting in new energy auctions; and (6) ANEEL Public Hearing No. 20 which deals with Trading Rules updating for 2019.

WATER RESOURCES AND ENVIRONMENT

In this section, we address the water crisis and the need to improve the monitoring of basins and of hydroelectric plants reservoirs for a more efficient operation of the water system.

INTERNATIONAL

In this section, we present a detailed analysis of the causes of high electricity prices in countries with large shares of renewable energies, such as Germany, California and Denmark.

SUPPLY

This edition features the updated balance of energy structural demand and supply for the coming years, including our traditional delay meter.