Brazil’s power regulator, Aneel, has decided to postpone the integration of demand response into energy pricing models, prioritizing system stability over potential computational processing delays.
The board of the National Electric Energy Agency (Aneel) has opted to temporarily maintain the exclusion of demand response from the models that govern operations and price formation in the electricity sector.
The decision, unanimously made on September 22, reflects caution regarding the performance of the Dessem model, fearing that including the feature would increase processing time and raise the frequency of contingency procedures in the National Interconnected System (SIN).
Although demand response is an essential tool—allowing large consumers to voluntarily reduce their electricity use, thereby providing vital system support—the current complexity of the grid demands prudence.
The National Electric System Operator (ONS) and the Electric Energy Commercialization Chamber (CCEE) have been tasked with continuing technical studies aimed at enabling implementation without compromising operational robustness.
Operational Impacts and Technical Challenges
The proposal, under discussion since 2023, aimed to treat consumption reduction offers in a manner analogous to thermal power plants. The goal was to allow these offers to be dispatched based on economic merit.
However, the operational reality has changed. With the entry of new ventures and a more demanding peak load, the ONS and CCEE warned of the risk of excessive complexity in Dessem‘s calculations.
Regarding the need for technical caution, sector specialists emphasize that stability is non-negotiable.
The central concern lies in preserving the models’ response time, given that grid complexity has grown significantly since the start of testing, making a hasty implementation that compromises dispatch security unfeasible.
Transparency and Next Steps
Despite the postponement in price modeling, Aneel mandated immediate progress on another front: transparency. The ONS and CCEE have a 90-day deadline to improve the platforms for disclosing the results of the demand response program.
The measure addresses a long-standing demand from agents such as Abrace, CPFL, and Neoenergia, who had requested greater clarity regarding the offers presented, the volumes effectively activated, and the economic impacts of the strategy.
The future scenario points to a more in-depth reevaluation. Structural issues, such as setting price caps for offers and new guidelines for penalties, were kept out of this specific decision.
They are expected to be on the agenda for the Regulatory Outcome Assessment (ARR) scheduled for 2027. Until then, the focus remains on optimizing existing systems, ensuring that the program continues to serve as a strategic arm.
This will occur while operating under current safety guidelines until processing technology allows for full and stable integration.
