Free Energy Market Transition: a Study Case of 32 Consumption Units in Brazil
Abstract
Given the growing consumption for energy, electricity represents a significant share in the public budget, particularly for the Government of Espírito Santo, approximately 12.46% of the total administrative expenses of the units. Based on this, the present study analyzes the feasibility of migrating Consumer Units of the Executive Branch of the State of Espírito Santo to the Free Contracting Environment, aiming for economic and sustainable gains. Thirty-two units were selected for a case study, based on consumption and demand data between 2024 and 2025, to project future consumption and costs. The analysis considered 32 Consumer Units, including the procurement of 1.25 MW average from conventional and renewable energy sources, indicating a potential savings of up to 30.54%. Although there are challenges characteristic of public administration, in contrast to management in the private sector, particularly due to national and subnational legal frameworks to which it is subject, the results indicate that migration is technically and economically feasible. This positions the Free Contracting Environment as a strategic alternative for optimizing public resources and meeting environmental goals, aligned with the Sustainable Development Goals and the longterm strategic plan entitled “ ES 500 anos ”.
Keywords
Free Contracting Environment, Retail Electricity Market, Public Services, Electricity