Tracking New Hourly Spot Pricing in Brazil
On January 1st, 2021, Brazil’s electricity market made the monumental shift to hourly spot pricing, fundamentally changing the market dynamics of the sector. Named Hourly PLD (hourly determined difference settlement prices), the new system is now the reference spot price for both physical and financial contracts traded in the unregulated market.
New business models trading on storage capacity, peak shaving, and price arbitrage have emerged as the sector seizes new opportunities of this long-awaited change. Existing and prospective investors are redeveloping their models and reimagining their business cases for the crucial decisions that lie ahead.
To support our community of analysts and investors, the Mangifera Analytics team has created a free and simple PLD monitoring tool to provide insight for all those exploring hourly spot pricing, and what it means for their interests in Brazil.
Sistema Interligado Nacional (SIN) is Brazil’s national interconnected system consisting of several individual power systems normally operating with a number of transmission lines.