Assessing the role of the energy reallocation mechanism and hybrid generation in reducing risks to the Brazilian electricity grid

Brazil's electricity grid has one of the highest shares of renewable energy resources in the world, at 83%, while the world average is about 22%. The country's energy market is the largest in Latin America and the ninth largest in the world. Since hydro power plays an important role, corresponding to about 65% of the country's energy grid, it is essential to develop mechanisms to mitigate risks of energy supply, through diversification of energy matrix and creating political instruments to minimise hydrological crisis' impacts. In that context, hybrid generation and market intervention mechanisms such as energy reallocation mechanism (MRE) can improve energy supply security. Therefore, this article aims to assess the status of hybrid generation in Brazil and the role of the MRE in the energy market, through exploratory analysis of government documents, national and international technical reports, and scientific articles. In conclusion, this study provides recommendations for developing a regulatory framework conducive for establishing a hybrid generation market in Brazil.