BRAZIL SOLAR MARKET

The Brazilian power sector is made up of two markets: the free power market and the regulated power market. 

The free power market 

The free power market, in which free power consumers, power generators and trading companies are the main agents. These agents must have a minimum demand for electricity and are free to negotiate their own power volumes and prices.

The regulated power market 

The regulated power market, which is mainly composed of distribution companies and captive consumers, whose commercial relationship is fully regulated by Agência Nacional de Energia Elétrica  (ANEEL), the State Electrical Regulator.

Distributed Generation

As a mechanism to stimulate the use of distributed generation, the National Electric Energy Agency (ANEEL) established the Electric Power System Compensation for Micro Generation, which states that end users can produce and supply energy to the network to which they are connected if they comply with certain technical procedures. This enables end-users to deduct the energy injected into the network from their own consumption, meaning that they only pay distributors the difference between their consumption and the power injected into the network.

Luz Consultancy’s business model is leasing the solar equipment to produce energy at a discounted rate to end-users under long term rental contracts that fit within these regulations.