Rystad Energy sees recurring, technology-agnostic capacity auctions in Brazil
Rystad Energy sees recurring, technology-agnostic capacity auctions in Brazil
Publish Date: 2026-06-23 14:18:00
Source Domain: www.bnamericas.com
The advance of centralized and distributed renewable generation is transforming the Brazilian power system and requiring new mechanisms to ensure operational security and flexibility.
According to Muched Nassif, head of renewables for Latin America at Rystad Energy, capacity auctions should become recurring, while batteries tend to gain ground as a tool to mitigate curtailment and support grid operation.
In an interview with BNamericas, Nassif also commented on the challenges of transmission expansion, the future role of distribution companies and the outlook for the full opening of the free energy market.
BNamericas: What would you highlight as the main challenges to be overcome in the power sector in the coming years?
Nassif: The generation matrix is becoming increasingly exposed to intermittency and weather conditions. We were already exposed to hydrology before, but now, with all the progress of renewables, especially in the free market and distributed generation, this exposure has been increasing.
This has been bringing volatility and operational challenges for the operator and, at the same time, market-related challenges. You already have an hourly price pattern that is quite characteristic of places with high solar penetration, for example, in the matrix.
BNamericas: This, moreover, is related to the liquidity crisis that power traders have been going through, as they were exposed to the price issue.
Nassif: As renewables advance, the sector becomes less predictable and this hampers trading’s positioning. But this exposure stems from a set of factors, including changes in the pricing rules and in the risk aversion curve.
But regardless of that, you have distributed generation advancing by leaps and bounds. Now there is a discussion about whether curtailment will happen or when it will happen.
BNamericas: There was an operation by ONS this month, which is already part of an emergency plan to experiment with and test what curtailment…
