Issue 72 • December 2012

Five shades of red: Topics that take away our sleep

OPINION

In this issue and in the following, we discuss five topics that in our view require urgent addressing, under penalty of significant losses for consumers and for the electricity sector. The first one is the optimistic bias in input data and parameters of computer models for operational simulation, which leads to an inefficient operation, and causes the risk of rationing to be underestimated.

REGULATIONS

This section addresses the following issues: (i) public hearing on mini-generation and micro-generation (again), resulting in amendments to the original normative ruling; and (ii) public hearing on trading rules for 2013.

ENVIRONMENTAL

In this section we discuss environmental restrictions on the operation of hydroelectric plants, analyzing cases of several Brazilian hydro plants and solutions implemented.

SUPPLY

This section presents an overview of electric energy supply in Brazil, through the structural balances of energy and peak developed by PSR.

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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.