[EN] What the U.S. can learn from Brazil’s power sector — and vice versa

A cross-border reflection on regulation, market design, and reliability

🔹 1. Time to look both ways

After three articles comparing FERC and NERC, ISOs and RTOs, and the contrasting models of Texas and Georgia, I’d like to end this series with a broader reflection.

The U.S. and Brazil have taken very different regulatory paths. But both countries face similar challenges:

• Ensuring reliability in an increasingly complex grid,

• Encouraging competition and innovation,

• And protecting consumers during times of scarcity or transition.

Let’s explore what the U.S. might learn from Brazil — and what Brazil might learn from the U.S..

🔹 2. What the U.S. can learn from Brazil

✅ 1. Long-term planning and structured expansion

• Brazil uses 10-year expansion plans, regulated auctions, and centralized coordination to ensure steady investment in generation and transmission.

• This avoids extreme volatility and supply gaps, especially in a system heavily reliant on hydroelectricity.

• Texas, for example, might benefit from adopting elements of this approach to improve long-term capacity adequacy.

✅ 2. Stronger integration between system operator and regulator

• Brazil’s energy institutions (ONS, ANEEL, MME, EPE, CCEE) work under a relatively integrated governance model.

• In the U.S., conflicting federal, state, and market-level decisions sometimes create regulatory overlap or gaps.

• The Brazilian model may inspire more cohesive decision-making frameworks.

✅ 3. Systemic rationality even in liberalized markets

• Brazil has a partially liberalized market, but planning, reliability, and public interest remain central to the design.

• Even private players must align with national energy strategies.

• This balance may offer insights for regions that seek more structured liberalization.

🔹 3. What Brazil can learn from the U.S.

✅ 1. Regionalization and operational flexibility

• The U.S. model of ISOs and RTOs allows for regional autonomy and experimentation.

• Brazil, with a national operator (ONS), could explore ways to simulate regional responsibility zones or dynamic pricing mechanisms based on locational signals.

✅ 2. Retail choice and consumer engagement

• Texas has proven that, when well-regulated, retail choice can increase innovation, service quality, and consumer awareness.

• Brazil can expand its free market gradually, with an emphasis on transparency, education, and digital tools.

✅ 3. Closer link between real-time operations and markets

• In the U.S., system operation and wholesale market clearing often happen within the same entity.

• Brazil can benefit from stronger coordination between ONS and CCEE in response to real-time conditions, especially during extreme events like droughts or heatwaves.

🔹 4. Final thoughts – There is no perfect model

Rather than copying each other, Brazil and the U.S. can evolve by observing each other’s strengths:

• Brazil brings planning discipline and governance integration.

• The U.S. brings market fluidity and regional flexibility.

In an increasingly interconnected energy world, the most valuable resource may be the ability to learn across borders.

Thank you for following this four-part journey through the U.S. and Brazilian power sectors. My hope is that this series has helped bridge technical insights between two of the world’s most influential electricity markets.

🔎 What’s one idea you think your country could borrow from another power system? 💬 What trade-offs are worth making in pursuit of resilience and innovation?

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