Optimizing Brazil's regulated electricity market in the context of time-of-use rates and prosumers with energy storage systems

The modeling of the regulated electricity market is essential since it allows the calculation of optimal rates by the regulatory agency, resulting in maximum socioeconomic welfare. Besides that, it is also possible to predict consumer behavior based on socioeconomic models. Therefore, under rate readjustments, energy shifting can be estimated and encouraged by the regulatory agency. This paper proposes major modifications to the optimized tariff model, originally developed for constant rates and grids without distributed energy resources, to model static time-of-use rates, distributed generation, and energy storage, enabling regulated electricity market optimization.