Bidding Assessment in the Brazilian Demand Response Program

This article presents a decision-making methodology for consumers that participate in the Demand Response Program (DRP) in Brazil. The DRP is a regulatory mechanism established to encourage consumers to reduce electricity consumption during periods of high demand in the system. The developed methodology covers integrated and interdependent steps, such as price and consumption forecasting, analysis of reduction potential and economic return, bids definition and confirmation, as well as the verification of possible penalties after operation. A case study involving a petrochemical consumer illustrates the methodology, with a total demand reduction of 10 MW during one week in October 2021, and an economic return based on a bid price suggested. The case also highlights the importance of evaluating opportunity costs and the potential risks of penalties due to unmet reduction targets.