Economical efficiency of coordinating the generation by subsystems with the capacity of transmission in the Brazilian market of electricity

This paper describes a competitive approach to electric power generation in Brazil. The decision-making process is modeled on Nash-Cournot equilibrium, wherein players (subsystems) make simultaneous decisions in relation to the quantities to be produced. The objective is to present a model in which each subsystem independently manages its operations, thus creating conditions for each region to develop according to its own peculiarity. In this approach, the importance of accurately dimensioning transmission lines is highlighted, since it is what determines the competitive degree among different subsystems. The results show that independent operation by subsystems can be implemented in Brazil with a low investment in the grid.