Aggregated Economic Analysis of the Brazilian Electricity Distribution Companies Using a Regulated Market Economic Model

Abstract

While most of the research work in the field of electrical engineering was aroused by the scientific challenges to be overcome, it is fair to recognize that the practical importance of engineering hinges on its economic impact on the market, the whole society and the environment. Thus, nowadays economic modeling, analysis and optimization of the electricity market is of the utmost significance. This work presents an aggregated economic analysis of the Brazilian electricity distribution companies using an economic model of a regulated market. The fundamental agents (consumer, power utility, government, society) are represented in the TAROT-Optimized Tariff Model, which is applied to the majority of the distribution companies in Brazil, based on public real data available from ANEEL-the Brazilian electrical energy regulatory agency. This reveals the economic flows in the regulated market of each company and also presents their financial status in terms of over-investments or under-investments compared to optimal investments and positive, negative or zero economic value added of each company. Moreover, the model analysis shows the socioeconomic welfare added to society in face of different optimization objectives.

Evaluating Public Policies for Fair Social Tariffs of Electricity in Brazil by Using an Economic Market Model

“…The regulatory economic electricity market model that is used in this work is the TAROT. This model was already used to analyse the impact of electricity theft on power quality [30], for evaluation of public policies in smart grids [31], to do a socioeconomic analysis of incentive public policies for the use of renewable energy per consumer class in Brazil [32], aggregated economic analysis of the Brazilian electricity distribution companies [33], the impact of quality investment in the electricity market [34], economic evaluation of regulatory tariff risk planning for a Brazilian electric Power Company [35], etc. It is a model that represents the Brazilian regulated electricity distribution Therefore, in this paper, the regulatory economic market model TAROT is applied taking into consideration the increase in the number of prosumers (consumers who produce their own energy), ordinary consumers and low-income consumers, in order to assess how the current TSEE public policy affects the regions already specified, and evaluate possible solutions.…”

“…The regulatory economic electricity market model that is used in this work is the TAROT. This model was already used to analyse the impact of electricity theft on power quality [30], for evaluation of public policies in smart grids [31], to do a socioeconomic analysis of incentive public policies for the use of renewable energy per consumer class in Brazil [32], aggregated economic analysis of the Brazilian electricity distribution companies [33], the impact of quality investment in the electricity market [34], economic evaluation of regulatory tariff risk planning for a Brazilian electric Power Company [35], etc. It is a model that represents the Brazilian regulated electricity distribution market.…”

Future assessment of the impact of the COVID-19 pandemic on the electricity market based on a stochastic socioeconomic model

“…Due to its effectiveness in modeling the regulated distribution electricity market, the TAROT model has been applied in several contexts. Among publications, stand out: socioeconomic feasibility assessment of ESS from society’s point of view, focusing on energy loss aspects [85] ; evaluation of energy theft [86] , which is a common issue in emerging countries; assessment of the effectiveness of public policies [87] ; analysis of the influence of power quality in the market [88] ; evaluation of increasing installed capacity of distributed generation (DG) [89] and aggregated analysis of regulated Brazilian power distribution companies [90] . Hence, the model is very flexible.…”

“…Although the TAROT has been applied for regulated electricity market modeling several times [9] , [85] , [86] , [87] , [88] , [89] , [90] , this paper is the first of its kind in combining rigorous data processing/robust stochastic optimization with the TAROT. This is particularly important since the TAROT is widely applied in the Brazilian context; however, the model is usually applied independently, without forecasting/optimization or other techniques.…”

Analysis of the impact of COVID-19 pandemic on the Brazilian distribution electricity market based on a socioeconomic regulatory model

“…The Optimized Tariff Model (TAROT) has been applied continuously to model regulated electricity markets and proved to be highly efficient in this regard. Publications related to the TAROT model include the integration of distributed generation (DG) in the context of fixed tariffs [33] , aggregated analysis of most Brazilian distribution companies [34] , risk evaluation of distribution companies based on stochastic simulations [35] , financial impact analysis of energy theft [36] , impact of power quality on electricity markets [37] , evaluation of public policies that encourage DG [38] , etc. The considerable number of publications that apply the TAROT model is due to the ease of adapting the model to different contexts.…”