Page 10 - Respond 2022 Magazine

What the perfect
fit for the energy in
Brazil looks like
To put this article in context, it’s
important to understand the
Brazilian electricity market. Our
grid is almost fully integrated
across the whole country,
with utility companies divided
basically by state (with the
exemption of a few cases where
there are more than one utility
company per state).
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The whole grid is owned by a governmental Before 2012 the only way to monetize
institution, but utility companies have power plants was selling energy in a typical
a public grant to operate it, in many PPA model in a free market. This regulation
established areas/states. brought a new energy business model in
Brazil. If you are in the regulated market
Usually, these utility companies only focus you still have no possibility to buy energy
on electricity distribution in their granted in a PPA, but you are able to lease or rent
areas. But sometimes they also supply a part of a power plant and exchange the
energy generation to their customers. The energy produced in a model of kWh credit.
customer has the option to buy energy from
another provider, but they must buy it from Now, with the whole market opened up
the utility granted company in their area. to supply energy and monetize power
plants, either by sale (free market) or lease
Ultimately, regardless of where customers (regulated market), our next step is to define
purchase their electricity in Brazil, they are what kind of power plant, we have to build.
always charged for: In other words, in which basket we should
Electricity produced (kWh): sometimes put our eggs.
paid to the utility company, sometimes to a
private power plant; Like the old adage, put all your eggs in one
Electricity distribution (kWh): always paid basket or split them in to separate ones?
to the utility company; We believe that you should only put all your
Demand (kW): always paid to the utility eggs in one basket, when you are 100% sure
company (this is for big consumers only); of something. Considering those baskets
Taxes: always paid to the utility company. as ways to produce clean energy, how can
we be sure of natural fluctuations if we
Another little-known topic in some are totally dependent on that to generate
countries, is Demand, this is the maximum electricity? So of course, our best option is
electrical capacity in kW that your definitely to diversify.
company/house uses in a moment. Utility
companies use that value to guarantee To help us with that decision we believe the
that they will have energy available for your most reliable and sustainable electricity
requirements. Only big consumers have it production is based on these 3 pillars:
in their electricity bills. Environment, Financial and Dispatch.
On the subject of big consumers, demand We have a lot of sun in Brazil, compared
is not the only difference between to Germany, for example, the lowest solar
them and small consumers. It’s only big irradiation region in Brazil has around
customers who have the option to buy 1,642 kWh/m² compared to the highest
their energy from any producer, small in Germany of 1,300 kWh/m². Sunshine
consumers are obliged to buy it from the is abundant and is a very clean way to
grid/utility company. produce energy, environmentally and
financially great, but with a shortcoming of
This division, by definition is between dispatch.
the regulated and free market. With
the regulated market you always buy Batteries can help with that short coming,
energy from the utility firm and with the but they have a low capacity for energy
free market you can buy energy from store. The most obvious solution is to use
anywhere. Also, with the regulation of the a huge battery bank that will inevitably
Distributed Energy Generation market in compromise our environment and
2012 even regulated market consumers financial pillars.
can exchange their energy produced to the
grid without having to pay for what they
have generated.