Perspectives of Smart Grid in the Brazilian Electricity Market

The objective of the Smart Grid (SG) is to provide technology and systems in order to allow consumers to make intelligent choices about how and when to use energy more efficiently. The implementation of SG has advanced in several parts of the world guided by different motivations. Brazil has been following this trend motivated by the benefits that SG can bring about services improvement, system reliability, power quality enhancement and energy waste reduction. From the commercial point of view, the SG contributes for the free market expansion and emphasizes the importance of adoption of market mechanisms on both supply and demand side. The aim of this paper is to describe market solution to encourage the effective participation of small producers and consumers in the Brazilian Electricity Market. Also is presented the first steps to format the Brazilian Program of Smart Grid by the Ministry of Mines and Energy (MME).