The ONS has submitted a proposal to Aneel to extend the demand response regulatory sandbox until 2030, aiming to increase the flexibility of the SIN.
The National Electric System Operator (ONS) has formalized a strategy with the Brazilian Electricity Regulatory Agency (Aneel) to extend and modernize the testing environment focused on the operational flexibility of Brazil’s energy sector.
The initiative seeks to extend the demand response regulatory sandbox until the end of 2030, allowing the National Interconnected System (SIN) to utilize new tools for managing peak consumption and power requirements without relying solely on dispatching thermoelectric power plants.
The move follows the Electric Power Sector Monitoring Committee (CMSE) recognizing the urgency of consolidating these mechanisms starting in 2027, in alignment with the guidelines of the Energy Operation Plan (PEN).
With the growth of intermittent renewable energy sources in the power matrix, active load management by large consumers has become a fundamental pillar for the security and stability of real-time operations.
New Rules and Contractual Flexibility
The proposal submitted by the ONS outlines a model divided into complementary fronts.
The first involves a structural review of the program, incorporating a so-called availability product.
Under this, industrial or commercial consumers commit to maintaining idle capacity ready to be reduced whenever the operator requires it.
The second front consists of expanding the experimental environment, providing autonomy to test different regulatory formats.
Among the main innovations suggested are more dynamic contract terms, exceeding the current twelve-month limit, as well as new methodologies for price formation.
The operator advocates for the creation of a hybrid remuneration structure, combining a fixed payment for load availability and a variable payment linked to actual dispatch, replacing the mandatory link to the Settlement Price for Differences (PLD).
It stated:
Adopting a specific variable price for the resource can align compensation with opportunity costs related to demand reduction, such as production shifts or losses, the use of on-site generation, and the costs of interrupting and restarting production processes.
Future Challenges for Energy Transition
The project’s scope also includes fine-tuning crucial technical parameters, such as the methodology for calculating the baseline—used to measure the exact volume of energy that was not consumed—and the revision of price caps in auctions, which will reflect the real cost of systemic alternatives rather than just the levels set by thermal plants.
If Aneel approves the request, the Brazilian Electric Sector will gain a robust horizon to test the resilience of industrial demand in the face of energy transition challenges.
The expectation is that the experimental environment will serve as a dynamic laboratory to establish demand response as a definitive resource in the SIN‘s operational architecture over the next decade.
