A Mathematical Modeling for Contract Flexibility Optimization by Brazilian Free Consumers

Authors

Keywords:

energy environment, energy purchase contract, free consumer, Brazilian energy environments, Free Contraction Environment, Mixed Integer Linear Problem

Abstract

In Brazil, free consumers must follow the criteria established by Law 9.074/95 and participate in the Free Contracting Environment (ACL), regulated by Decree 5.163/04, together with energy generators, traders, importers and exporters. These free consumers can choose and negotiate their energy purchase contracts (energy volumes, contract terms, prices, flexibilization and financial guarantees) with the other agents connected to the interconnected Brazilian grid. However, free consumers must have 100% of its energy contracted to avoid exposure to the short-term market and possible penalties, among others points. It is noteworthy that free consumers in Brazil are usually large industries and use electricity energy only to manufacture their products. In this sense, they are totally averse to contractual risks and penalties and seek the ACL only to obtain financial reductions with the same contractual security as the regulated market. In this sense, the main objective of this work is to model the mathematical optimization problem for contract flexibility optimization by free consumer in the ACL, minimizing the energy cost to meet its demand.

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Author Biographies

Fabricio Yutaka Kuwabata Takigawa, DAE - IFSC - Campus Florianópolis. CEP: 88020-300 - Florianópolis - SC – Brasil

Fabrício Yutaka Kuwabata Takigawa received the Electrical Engineering degree from Universidade Estadual Paulista Júlio de Mesquita Filho (UNESP), in 2003, Bauru, Brazil, and Master Eng. and Doctor Eng. degrees in Electrical Engineering from Federal University of Santa Catarina (UFSC), Florianopolis/SC, Brazil, in 2006 and 2010, respectively. Since 2009 he has been developing teaching/research activities at Federal Institute of Santa Catarina (IFSC), Florianopolis, Brazil. His main fields of interest include power system planning, scheduling generation of hydrothermal systems, DR programs and applied mathematical programming.

Murilo Reolon Scuzziato, DAE - IFSC - Campus Florianópolis. CEP: 88020-300 - Florianópolis - SC – Brasil.

Murilo Reolon Scuzziato received the master degree and PhD in Electrical Engineering at Universidade Federal de Santa Catarina (UFSC) in 2011 and 2016, respectively. Since 2009, he has been developing research activities in electrical power systems planning, hydrothermal unit commitment and applied mathematical programming. He is now Assistant Professor at IFSC.

Daniel Tenfen, DAE - IFSC - Campus Florianópolis. CEP: 88020-300 - Florianópolis - SC – Brasil.

Daniel Tenfen received the Electrical Engineering degree from University Center of Jaragua do Sul (UNERJ), in 2009, Jaragua do Sul, Brazil, and Master Eng. and Doctor Eng. degrees in Electrical Engineering from Federal University of Santa Catarina – UFSC; Florianopolis, SC, Brazil, in 2011 and 2015, respectively. His main fields of interest are electricity market simulation and regulation, power system planning and optimization, renewable generation, microgrids, smart grids and DR programs.

Rubipiara Cavalcante Fernandes, DAE - IFSC - Campus Florianópolis. CEP: 88020-300 - Florianópolis - SC – Brasil.

Rubipiara Cavalcante Fernandes received the Graduate Eng.; Master Eng. and Ph.D. Eng degrees in electrical engineering from Federal University of Santa Catarina – UFSC; Florianopolis, Brazil, in 1985, 1995 and 2006, respectively. Since 1991 he has been developing teaching/research activities at Federal Institute of Santa Catarina – IFSC; Florianopolis, Brazil. He has been working with the Brazilian Electric Sector restructuring process and his main fields of interest are power market simulation and regulation, power system planning and optimization, DER and DR programs.

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Published

2021-03-13

How to Cite

Takigawa, F. Y. K., Scuzziato, M. R., Tenfen, D., & Fernandes, R. C. (2021). A Mathematical Modeling for Contract Flexibility Optimization by Brazilian Free Consumers. IEEE Latin America Transactions, 18(9), 1530–1537. Retrieved from https://latamt.ieeer9.org/index.php/transactions/article/view/2131