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Causes of Volatility in the Spot Price of Electricity in Brazil

Authors

  • André Luis da Silva Leite

    Endereço: Departamento de Ciências da Administração Campus Universitário - Trindade - Florianópolis (SC) 88040-900

  • Nivalde José de Castro

    Instituto de Economia/UFRJ Av. Pasteur, 250 - sala 226 Urca - Rio de Janeiro (RJ) 22290-240

  • Raul Ramos Timponi

    Rua Funchal, 411, 4o andar, Sala 19 Vila Olimpia Sao Paulo - SP 04551-060
Keywords:
Setor elétrico, preço spot, volatilidade
Abstract
The reforms faced by the Brazilian electric sector, in 1996 and 2004, introduced market mechanisms in the sector, with emphasis on the spot market. However, the price of electricity in this market has experienced significant volatility. The objective of this paper is to discuss the dynamics of the Settlement Price Differences (PLD), which is the spot price in Brazil, with emphasis on the causes of such volatility. The paper concludes that there are three causes: a reduction in investment in the period immediately after the energy rationing in 2001, the environmental restrictions imposed by the 1988 Federal Constitution and the criteria for the dispatch order of the Brazilian model.
Author Biographies
  1. André Luis da Silva Leite, Endereço: Departamento de Ciências da Administração Campus Universitário - Trindade - Florianópolis (SC) 88040-900
    Doutor em Engenharia de Produção pela Universidade Federal de Santa Catarina
  2. Nivalde José de Castro, Instituto de Economia/UFRJ Av. Pasteur, 250 - sala 226 Urca - Rio de Janeiro (RJ) 22290-240
    Doutor em Educação pela Universidade Federal do Rio de Janeiro
  3. Raul Ramos Timponi, Rua Funchal, 411, 4o andar, Sala 19 Vila Olimpia Sao Paulo - SP 04551-060
    Mestre em Economia pela Universidade Federal do Rio de Janeiro
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Published
2013-12-04
Issue
Vol. 34 No. 2 (2013)
Section
Artigos
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