National Engineering Academy 2025

Subsidies, Auctions, and Reforms: the future of Brazil’s electricity sector under debate.

 

The current regulatory framework of the Brazilian electricity sector shows clear signs of exhaustion. Deeply rooted subsidies have led to growing distortions between planning and operation, while the misvaluation of the attributes of energy sources and market participants has, in many cases, rendered the market dysfunctional, unfair, and inefficient.

In this context, Professor Alexandre Street, coordinator of LAMPS-PUC-Rio, will participate on April 17 in the ANE Energy Committee Panel on Subsidies, Auctions, and Reforms, alongside two leading experts in the sector: Luiz Barroso and Luiz Maurer.

During the panel, Street will present new results from recent research conducted at LAMPS and raise clear and objective questions about the future of Brazil’s electricity sector. The focus will be on the reforms needed to restore economic efficiency, fairness among market agents, and consistency across price signals, operation, and expansion planning.

Presentation available in Portuguese: [Download]