• 595 TWh Energy Demand
  • 165.2 GW Installed Capacity
  • 86 % Renewable Share


The Brazilian power system is predominantly hydroelectric. However, hydro generation is not enough to supply the total demand, making the thermal power dispatch necessary, mainly in the dry season. As a consequence, spot prices vary according to the system conditions (hydrology and reservoir levels).

The system is divided into four interconnected submarkets with their own demand, rainfall patterns and spot prices.

  • Total Capacity
  • Total Generation
PEN 2019/ONS and BEN 2019/EPE

165 GW


Market Design

How is the market structured?

The Brazilian market is divided into Free Market Environment (deregulated) and Regulated Market Environment.

In the deregulated market, generators, traders and consumers freely agree energy contracts. Usually the Power Purchase Agreement (PPA) term varies between three and five years with physical delivery.

In the regulated market, generators sell energy in long-term contracts (~20 years) through auctions managed by the government. The power costs are passed directly to end users who are not able to participate in the deregulated market.

The National Interconnected System (SIN, in Portuguese) covers the entire Brazilian territory and has trading arrangements to import/export power to and from Paraguay, Argentina, Uruguay and Venezuela, and import gas from Bolivia.

The Brazilian market operates in four interconnected submarkets with their own demand, rainfall patterns and spot prices. Their prices may differ from each other when the interconnection lines are congested. Hydrology in the short-term, and structural balance between supply and demand in the medium- to long-term are the main drivers of prices.

Can I buy long-term power in the traded markets?
Industrial and commercial clients connected in high tension with contracted demand equal or higher than 0.5 MW can buy long term power in the deregulated market.

Residential, small industry and commercial end-users must buy their power from a local utility. Medium-sized industries, large businesses and retail groups have the option to negotiate their power supply directly with a generator.

Network charges and other system costs are shared among the system users. They are charged through the regulated market’s tariffs and in the free market taxes.

In Brazil, most of the generation sold to regulated market is renewable. There is still no market to trade RECs (Renewable Energy Certificate) or GoOs (Guarantees of Origin); however, all power plants are defined as renewable or not by the government in their authorization act.

How are RECs (Renewable Energy Certificates) procured?  The REC market is still in development in Brazil – there is no historical data to define it yet.

Are renewable Power Purchase Agreements (PPAs) available?  Yes

Are Green Tariffs available? No


  • ANEEL – Government agency responsible for the regulation, inspection and policies of the Brazilian power market

Key Government Department:

  • EPE – Government entity responsible for the system’s planning

System Operator:

  • ONS – The national operator, responsible for the coordination and control of power generation and transmission of the system

Power Exchange:

  • CCEE – Enables the commercial operations of power

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