How will the price of energy be in the future? How are you preparing for the adoption of the hourly price in 2021? What about price-per-offer studies? These were some of the questions presented and discussed by the Electric Energy Trading Chamber - CCEE in a virtual meeting with the Energy Committee of the National Engineering Academy - ANE Brasil. The vice president of the Board of Directors, Talita Porto, presented a summary of the report prepared by the Price Formation WG for Electric Energy Modernization of the Ministry of Mines and Energy, which guides the actions of the Modernization Implementation Committee conducted by the same body .

The discussions were divided into three important themes: improvements in the calculation of the price per model, hourly price and price per offer. “The discussion with renowned and important professionals for the energy sector was enriching, as we had the opportunity to discuss international experiences and analyze the Brazilian reality”, comments the CCEE advisor.

Regarding price improvements by model, the presentation highlighted the establishment of the PMO and PLD Technical Committee to address governance; the implementation of parameters that increased risk aversion in 2020, which reduce thermal generation outside the order of merit; the discussions on volatility within the scope of CPAMP, which are expected to be concluded in 2021; and the official adoption of hourly PLD as of January next year.

When evaluating the shadow operation, which calculates the price on an hourly basis for analysis by market agents, Talita highlighted some trends identified over the period, such as the price value following the load curve and the reduction in charges. According to data obtained by the CCEE, from January to April R $ 182 million would have been charged in charges in the shadow operation. In 2019, in the same period, approximately R $ 1.02 billion were charged.

At the meeting, some relevant features for the implementation of price per offer were discussed. According to the modernization report, it can be concluded that two points of attention are crucial for advancing the development of the methodology: structuring strong regulations and mechanisms for monitoring and controlling the exercise of market power; and establish a price offer mechanism that harmoniously coexists with the physical dispatch of hydroelectric plants.

“The studies for the modernization of price formation established two aspects. First, we have to continue methodological improvements in the model chain with a focus on hourly pricing. At the same time, we have a scope of study of the price per offer and two projects for development under analysis, an R&D and a project with the World Bank ”, concludes Talita.

Check out the presentation here.