Issue 70 • October 2012

Supply security: Whistling in the dark ?

OPINION

Despite the multiplicity of blackouts in October, and the decision by ONS a week ago to activate all thermal power plants in the country, including the expensive oil-fired ones, government officials state that the Brazilian system is "very reliable". In this issue, we analyze which would be the indices and operating performance criteria, both for transmission and generation, that enable to endorse and quantify such reliability.

REGULATIONS

This section covers the following topics: (i) public hearing on contracting of physical guarantee quotas; (ii) public hearing on the treatment of unavailability of inflexible and Aeolian plants.

JURIDICAL

The main theme of this section is the effect of Provisional Measure (MP) No. 579 on the electric energy distribution concessionaires, including a historical background of the legal treatment of this segment and an analysis of prospects with the new legislation.

ENVIRONMENTAL

PSR makes an analysis of the actual ordeal faced by new small hydroelectric plants (PCHs). We present the difficulties encountered by entrepreneurs and technical-environmental licensing bodies, concluding with a diagnosis of PCHs in Brazil, and recommendations.

SUPPLY

This section presents an overview of the electric energy supply in Brazil.

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Electronically published since 2006, the PSR Energy Report is a monthly newsletter developed by PSR, whose main objective is to present a comprehensive and current analysis of regulatory, legal issues, water resources and environment and supply of the electricity sector in Brazil.