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New commercial arrangements and business models in electricity distribution systems: The case of Brazil

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  • Ramos, Dorel Soares
  • Del Carpio Huayllas, Tesoro Elena
  • Morozowski Filho, Marciano
  • Tolmasquim, Mauricio Tiomno

Abstract

The purpose of this article is to explore some business models suitable for medium- and low-voltage electricity consumers and analyze the risks and opportunities associated with the diffusion of distributed generation. The approach considers demand response mechanisms that contribute to mitigating commercial risks and overcoming the operational challenges arising from large-scale integration of distributed generation. In particular, the study assesses new application opportunities for distributed generation of renewable energy and examines related measures to mitigate possible market risks associated with the intermittency characteristics of this type of sources. This research has a global perspective but focuses on the case of Brazil. The article proposes four business models to address the issues of small consumers (residential and commercial) as part of the demand response program established in the country. Two of these models are found adequate to reflect the current electricity market, but the existing regulations may require some modifications before the other two could be applied. However, these latter models can be applied to more mature markets. Moreover, the article describes a demand response pilot program that is already in operation, which could serve as a platform to preprocess the proposed business models.

Suggested Citation

  • Ramos, Dorel Soares & Del Carpio Huayllas, Tesoro Elena & Morozowski Filho, Marciano & Tolmasquim, Mauricio Tiomno, 2020. "New commercial arrangements and business models in electricity distribution systems: The case of Brazil," Renewable and Sustainable Energy Reviews, Elsevier, vol. 117(C).
    • Handle: RePEc:eee:rensus:v:117:y:2020:i:c:s1364032119306768
    DOI: 10.1016/j.rser.2019.109468
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    2. Schaefer, Jones Luís & Mairesse Siluk, Julio Cezar & Stefan de Carvalho, Patrícia & Maria de Miranda Mota, Caroline & Pinheiro, José Renes & Nuno da Silva Faria, Pedro & Gouvea da Costa, Sergio Eduard, 2023. "A framework for diagnosis and management of development and implementation of cloud-based energy communities - Energy cloud communities," Energy, Elsevier, vol. 276(C).
    3. Botelho, D.F. & de Oliveira, L.W. & Dias, B.H. & Soares, T.A. & Moraes, C.A., 2022. "Prosumer integration into the Brazilian energy sector: An overview of innovative business models and regulatory challenges," Energy Policy, Elsevier, vol. 161(C).
    4. Nametala, Ciniro Aparecido Leite & Faria, Wandry Rodrigues & Lage, Guilherme Guimarães & Pereira, Benvindo Rodrigues, 2023. "Analysis of hourly price granularity implementation in the Brazilian deregulated electricity contracting environment," Utilities Policy, Elsevier, vol. 81(C).
    5. Brunna Lima Porfirio de Sousa & Flávia Lopes & David Mickely Jaramillo Loayza & Diego Mauricio Yepes Maya & Juan Jose Garcia Pabon, 2024. "Case Study of the Impact of New Brazilian Legislation in the Year 2023 on the Economic Feasibility of Photovoltaic Microgeneration: Homes in the City of Fortaleza," Energies, MDPI, vol. 17(15), pages 1-20, July.
    6. Botelho, D.F. & Dias, B.H. & de Oliveira, L.W. & Soares, T.A. & Rezende, I. & Sousa, T., 2021. "Innovative business models as drivers for prosumers integration - Enablers and barriers," Renewable and Sustainable Energy Reviews, Elsevier, vol. 144(C).
    7. Sorknæs, P. & Lund, Henrik & Skov, I.R. & Djørup, S. & Skytte, K. & Morthorst, P.E. & Fausto, F., 2020. "Smart Energy Markets - Future electricity, gas and heating markets," Renewable and Sustainable Energy Reviews, Elsevier, vol. 119(C).

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