Marcio Giannini Pereira

Chapter 15 – The Evolution of Brazilian Electricity Market

This chapter presents an analysis of the evolution of Brazilian electricity market. The first reform process liberalized the energy sector during the 1990s. However, the competition was not effective and the investment was insufficient, flaws that became evident during the power rationing of 2001/2002. During the second phase of reform in 2004, the State regained its planning role in the power sector and distribution companies were required to engage in long-term contracts through competitive auctions, which is the central theme of the second reform process. Currently, the most pressing challenge for Brazilian power sector is to provide electricity to a continuously growing market at affordable prices and to keep a clean energy matrix.