Auctioning electricity transmission margins for competitive access to Brazil's National Interconnected System

Lucas Santos e Silva and Mauricio Soares Bugarin

Utilities Policy, 2025, vol. 95, issue C

Abstract: Recent transformations in the Brazilian Electricity Sector (BES) have generated intense competition for access to transmission capacity in the National Interconnected System (NIS). This situation has highlighted the inherent scarcity of transmission resources and the inadequacy of the current queue criterion for allocating remaining margins. We address the country's new reality by proposing a straightforward and transparent competitive mechanism to enhance allocative efficiency and improve access dynamics. More specifically, we propose a Transmission Margin Auction (TMA) for the BES, based on an open ascending format, according to which all the available capacity established by the National System Operator's (ONS) expansion plan is offered sequentially, and participants are allowed to compete for any available connection point.

Keywords: Mechanism design; Transmission margin auctions; Brazilian national interconnected system; Transmission network access; Grid access (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:juipol:v:95:y:2025:i:c:s0957178725000773

DOI: 10.1016/j.jup.2025.101962

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