The Brazilian Electricity Regulatory Agency (Agência Nacional de Energia Elétrica -ANEEL) held a public call between 2018 and 2020 to receive input for the preparation of the bidding document for the Energy Efficiency Auction. The purpose of the auction is to hire entities to carry out energy efficiency (EE) actions aimed at reducing electricity consumption in the city of Boa Vista (State of Roraima).

The present work, carried out by researchers from the Climate Policy Initiative/Pontifical Catholic University of Rio de Janeiro (CPI/PUC-Rio), aims to explain the EE auction design and to point out and assess the risks of the proposed model regarding its implementation in Roraima’s pilot. The contributions seek to mitigate the risks tied to the Winner’s Curse, perfect the chosen measurement and verification (M&V) methodology and present the implementation challenges associated to the misalignment between the interests of the electricity distributor and those of the central planner.