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During the last 10 years Brazil has accelerated the incorporation of new wind capacity into its power matrix. This situation has generated the need for increased transport capacity. However, there have been delays in the planning process for new transmission line construction, thus inducing trapped electricity in the system; in other words, electricity that cannot be dispatched to the interconnected system. Using system dynamics modelling, this paper assesses energy policy alternatives for improving the synchronisation between the construction of both power generation and transmission capacities. Simulation results show that policy synchronisation within the wind industry may provide important opportunities regarding security of supply. This paper concludes that in Brazil's case it is possible to attain a balance between wind power expansion and interconnection capacity through synchronised and systemic interventions. • Power systems require a sustainable balance between supply and demand. • Wind power industry could be affected by energy policy fragmentation. • This article assesses alternative policy options to contribute to the existing literature on grid congestion. • New insights on the synchronisation of energy policies for the wind industry expansion is offered. [ABSTRACT FROM AUTHOR]

The use of wind power has gained prominence on the world stage, especially in Brazil. In addition to generating energy free of emissions, wind technology is the second cheapest generation option in Brazil. At the same time, it has contributed to reducing hydrological vulnerability caused by climate variation. Although wind power has experienced a steady expansion in the last decade, recent poor outcomes of wind auctions produced uncertainty about the future of this technology in the country. This paper analyses the influence of contract mechanisms used in Brazilian energy auctions for the growth of wind generation. To do this, a scenario analysis based on a hybrid simulation model is used, combining agent-based modelling (ABM) and system dynamics (SD). From the hybrid simulation, the effect of the wind project cancellation policy is analysed, on the one hand, and different ceiling prices for competing sources in the auctions are assessed, on the other. Moreover, the simulation model shows how hydro conditions affect reserve energy auctions. [ABSTRACT FROM AUTHOR]