Our consultant, Luiz Felipe Monteiro Seixas, was featured in a BNamericas article on the suggestion by the Energy Research Company (EPE) that ANEEL should require high levels of bid security for projects to be eligible in the country’s first battery capacity reserve auction (LRCAP).
According to EPE, the measure is appropriate as it ensures a level playing field amongst competitors and reduces incentives for strategic behaviour when declaring investment, thereby curbing the information asymmetry inherent in self-declared parameters.
For Luiz, EPE’s proposal makes sense, but calls for caution. “The problem is that EPE is not clear; it does not specify how much to raise the threshold, but merely suggests a ‘higher threshold’, which leaves Aneel to make a sensitive decision without objective criteria, leaving room for questions later,” he analyses.