Enhancing Flexibility and Ensuring Efficiency and Security: Improving the Electricity Market in Brazil via a Virtual Reservoir Model

Abstract

• Nevertheless, the conciliation between commercial commitments and the physical dispatch is not smooth. There is a lack of “trading opportunities” to encourage participants to comply with their contracts. Moreover, the Brazilian short-term market acts as a mechanism to settle differences rather than a true market and, neither the short-term price nor the dispatch schedule is determined by the market.