Electricity Market Liberalization: What Brazil Can Learn from Austria’s Energy Reform

E lectricity market liberalization. Living and working in Austria since 2017, deeply engaged in its sustainable energy sector, I've witnessed firsthand how much Brazil can benefit from Austria’s electricity market transformation.

As Brazil embarks on liberalizing and modernizing its electricity sector, Austria’s experience offers a compelling roadmap.

Since full liberalization in 2002, following the staged opening beginning in 1998 and culminating with full household access under the ElWOG II framework, the shift from a centralized monopoly to a competitive and innovation-oriented market has been profound. The results are striking: industrial customers saw price reductions of up to 50%, while households saved around 10% on their annual energy bills—translating to an estimated €800 million in consumer savings overall.

This transformation was methodically executed: liberalization began with industrial clients, then extended to SMEs, and finally to households—all overseen by the independent regulator E-Control, founded in 2001 with a €10 million budget and around 67 employees. Meanwhile, consumers accessed robust support via the Austrian Energy Agency, and continued smart-grid investments by Austrian Power Grid (APG) further fortified the transition.

This combination of regulatory clarity and digital infrastructure enabled transparent pricing, swift provider switching, and empowered consumers to make informed choices. The benefits extended far beyond lower prices: efficiency rose, and consumers evolved into active market participants. Platforms such as e-Friends and Energie AG’s E-Fairteiler have revolutionized energy trading and prosumer engagement.

As a prosumer myself, I can attest: with rooftop PV panels I can instantly sell surplus solar energy through a trading platform to neighbors—even across the country—for seamless peer‑to‑peer (P2P) energy trading that unlocks new income opportunities and supports Austria’s green energy goals.

Austria’s photovoltaic (PV) landscape illustrates this shift vividly:As of end of 2023, there were approximately 400,000 PV systems in operation in Austria, with 128,812 newly installed systems just in that year. Cumulative PV capacity soared from ~6.5 MW in 2001 to around 6,395 MW by end of 2023—a more than thousandfold increase over two decades (source).

The PV sector in 2023 supported nearly 13,000 full‑time jobs across R&D, manufacturing, distribution, and installation, generating an estimated €4.35 billion in turnover and €1.3 billion in PV electricity sales revenue (source).

For Brazil, advancing toward the Electricity Market Liberalization, the Austrian experience shows that liberalization’s true power lies not in dismantling structures, but in building trust, investing in technology, and activating consumers as market participants.

With gradual competition, smart grid development, and supportive policies for energy communities, Brazil can reduce electricity costs, stimulate innovation, and build a modern, sustainable electricity sector grounded in participation and equity.