Planning for big things in Brazil

Planning and building large-scale transmission networks in competitive hydrothermal systems in Brazil is presented. The economic evaluation of new generation projects has to take into account an estimate of the associated transmission charges. The business model for transmission expansion in Brazil relies on a combination of planning and competition. The model is to be successful both in terms of ensuring expansion and attracting private investments and is being considered by other Latin American countries, mainly Central America and the Andean market. The interchange capacity limits in between regional systems have increased due to new transmission facilities, avoiding congestion risks, enhancing the system security margins, and giving more transmission capacity to accommodate the needed power flows to optimize the hydrothermal dispatch.