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How does energy exchange work?

Energy exchange enables the transfer of electricity between countries or regions in cases of supply shortage or surplus. In Brazil, the National Interconnected System (SIN) facilitates these exchanges through four regional submarkets. The country primarily engages in exchanges with Argentina, Uruguay, Paraguay, and Chile, enhancing the utilization of energy matrices and reducing costs.
A comparative chart displays the heights of a two-story house (8m), an aerial work platform (6m), a high platform (51m) - labeled as "Platforms for work at heights between 6 and 51 meters" - and the Christ the Redeemer statue (38m). The figures are shown in gray or orange, highlighting Tecnogera's solutions.
A comparative chart displays the heights of a two-story house (8m), an aerial work platform (6m), a high platform (51m) - labeled as "Platforms for work at heights between 6 and 51 meters" - and the Christ the Redeemer statue (38m). The figures are shown in gray or orange, highlighting Tecnogera's solutions.
Index

Energy exchange involves the import or export of energy—electric, wind, solar, thermal, etc.—between countries or regions in cases of supply challenges or excess availability.

This “exchange” of energy is primarily conducted through transmission lines and pipelines.

This type of integration promotes better utilization of energy matrices, reducing production costs and increasing market security and competitiveness. This is because the market is assured that if there is an energy shortage or surplus, a country or region can balance its demand.

Without jeopardizing the security of the National Interconnected System (SIN), energy exchange is conducted by authorized agents (distributor, generator, marketer, free or special consumer) who establish usage and connection contracts with the National Electric System Operator (ONS).

Under current regulations, contracting can only occur once a month, regardless of the number of days the network is used, and requires regulatory and technical studies.

Energy exchange has two modalities: in the “non-return” mode, one country purchases energy from another, while the “with return” mode functions like a loan where the used energy is returned to the supplying country.

Due to Brazil’s territorial size, the SIN plays a crucial role in energy exchanges between the country’s regions. The system is divided into four submarkets:

  • South
  • Southeast/Central-West
  • Northeast
  • North

The energy produced circulates freely within each of them.

To leverage seasonal surpluses from hydraulic generation and other producing sources, exchanges between these regions have been expanded in recent years.

In South America, Brazil’s main interconnection is with Argentina, as these countries have complementary electrical systems. Additionally, the Brazilian system also engages in energy exchanges with Uruguay, Paraguay, and Chile.

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