Brazil’s power sector is entering a new era with the open-sourcing of its computational pricing model, aiming to replace NEWAVE and DECOMP by 2028.
The National Electric System Operator (ONS), the Electric Energy Trading Chamber (CCEE), and the Energy Research Office (EPE) have initiated a historic transformation in the digital infrastructure supporting Brazil’s energy market. By releasing the source code of their new planning and operation model in a public repository on GitHub, the institutions are ending decades of technological opacity and opening the door to collaborative governance.
The initiative aims to create a more transparent system tailored to the complexity of the current energy matrix, which increasingly relies on variable renewable sources. The entities’ goal is for the new tool to take center stage in determining the PLD (Difference Settlement Price) starting in January 2028, marking the end of the lifecycle for traditional models NEWAVE and DECOMP.
Open architecture and transition schedule
The development of this platform strictly follows the parameters of External Consultation No. 5/2026, which requires greater traceability, cybersecurity, and version control for routines. Unlike legacy systems, the new software was designed with a modular structure, allowing advanced features—such as the integration of battery storage systems and ancillary services—to be incorporated gradually through future updates.
To ensure system reliability, the schedule establishes a 24-month “shadow period.” Throughout 2026 and 2027, the new model will run concurrently with current systems. This process will allow for fine-tuning and the calibration of risk-aversion parameters; however, if technical maturity demands it, the final migration may be postponed to January 2029.
“Code openness and shared ownership build an environment where the market actively participates in the tool’s evolution, keeping predictability and security in price formation as non-negotiable pillars.”
Impact on sector governance
The leadership of the three entities emphasizes that this shift is essential for handling the rapid transformation of the SIN (National Interconnected System). By involving consultancies, academia, and market agents in the validation process, the project seeks to mitigate volatility risks and ensure that the new computational intelligence accurately reflects the physics of the electrical system.
ONS Director-General Marcio Rea stressed that this evolution is indispensable for the sector, demanding absolute technical rigor. Meanwhile, Reinaldo da Cruz Garcia from EPE pointed out that the project aligns with the guidelines of CNPE Resolution No. 1/2024, positioning Brazil at the forefront of energy management through tools that reflect the dynamics and growing variability of a modern, sustainable power grid.