Brazil's power sector is going through its biggest transformation in decades. On one side, distributed generation (DG), consolidated by Law 14,300; on the other, the opening of the free energy market (ACL), which keeps widening who can choose where to buy energy. For an attentive installer this is not a threat — it is a new menu of opportunities.
DG vs free market: do not confuse them
They are different and complementary. In DG, the customer generates their own energy (on the roof or at a remote plant) and offsets consumption through the Electric Energy Compensation System (SCEE). In the free market (ACL, the Free Contracting Environment), the customer buys energy directly from generators or traders, negotiating price and term instead of paying the utility's regulated tariff. One generates; the other chooses the supplier.
The market opening and what changes
Migration to the ACL keeps being widened: since 2024, Group A consumers can migrate regardless of load size (through a retail trader), and extending access to low voltage (Group B) is under discussion. This creates demand for people who understand energy to guide the decision, combine their own DG with ACL contracts and optimise the customer's total cost.
How installers can position themselves to profit
You do not need to become a trader to profit. Practical paths: (1) be the trusted advisor who assesses whether DG, ACL or both make sense; (2) set up partnerships with traders and earn referral fees; (3) serve Group A with mini-generation projects and add migration to the ACL; (4) add storage and O&M to the portfolio. Whoever offers the full view of energy costs becomes indispensable.
Distributed generation vs free market
| Aspect | Distributed generation (DG) | Free market (ACL) |
|---|---|---|
| What the customer does | Generates their own energy | Chooses who to buy from |
| How they save | Offsets consumption (SCEE) | Negotiates the energy price |
| Relationship with the utility | Keeps it (uses the grid) | Pays only for grid use (TUSD) |
| Typical customers today | Homes, retail, agribusiness | Group A (widening) |
| Installer's role | Design and installation | Advice and partnerships |