Model for the flexible commercialization of thermoelectric plants in Brazil

ABSTRACT

This article proposes a model that allows thermoelectric power plants to identify the risks and opportunities that exist during the marketing of electricity in “hybrid” markets, where electricity is offered in two types of environments: regulated and free. Because electricity generated in Brazil is predominantly hydraulic, it has adopted a scheme of centralized dispatch through a chain of optimization models, the natural gas thermal power plants enter in a complementary manner, which mitigates operational risk in dry periods. In this article, the value of operational flexibility will be estimated, and a model will be proposed to help thermoelectric power plants with energy-marketing decisions in both regulated and free markets. The results indicate that paying a premium for the availability of generation capacity can significantly stimulate the development of new projects in thermoelectric generation.

KEYWORDS:

• Electricity commercialization
• electricity markets
• energy resources
• flexibility
• thermoelectricity

Acknowledgments

The author would like to express gratitude to researchers Luiz Claudio Gutierez and Bianca Nunes for their valuable participation in this project.

Funding

This article was developed during a project financed by Petrobras.

Notes

¹ EPE is linked to the Ministry of Mines and Energy of Brazil. According to article 2 of Law 10,847 of March 15, 2004, it aims to “provide services in the area of studies and research to support the planning of the energy sector such as electricity, oil and natural gas and its derivatives, coal, renewable energy sources, and energy efficiency, among others,” being responsible for planning the expansion of the Brazilian Electricity Sector.

² The ONS is an independent private nonprofit agency responsible for planning the Brazilian electric power industry operation. It is composed of several agents (generation, transmission, distribution and free consumer).

³ This coordination requires a cooperative environment between the ONS and EPE.

Additional information

Funding

This article was developed during a project financed by Petrobras.