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Analysis and perspectives of the government programs to promote the renewable electricity generation in Brazil
ARTICLE IN PRESS
Energy Policy 35 (2007) 2989–2994 www.elsevier.com/locate/enpol
Analysis and perspectives of the government programs to promote the renewable electricity generation in Brazil B.J. Ruiza,, V. Rodrı´ gueza, C. Bermannb a
Postgraduate Degree in Energy Engineering, Universidad Nacional Auto´noma de Me´xico, Av. Universidad 3000, Ciudad Universitaria, C.P. 04510, Ciudad de Me´xico, Me´xico b Instituto de Eletrote´cnica e Energia, Universidade de Sa˜o Paulo, Av. Luciano Gualberto 1289, Cidade Universita´ria, CEP 05508-900, Sa˜o Paulo, Brazil Received 18 July 2006; accepted 27 October 2006 Available online 11 December 2006
Abstract Government programs to encourage renewable electricity production in Brazil are analyzed in order to evaluate aims and identify problems in the execution of such programs in order to provide ideas to channel them. In terms of methodology, the analysis is based in a chronologic study of the programs, in order to establish whether or not renewable energy policies have been linked. The paper concludes that already-executed programs and those in progress have deficiencies that hinder the achievement of their goals; therefore diversification policies for renewable energy will not be achieved in the foreseen timeframe. Therefore, certain policy changes are proposed. r 2006 Elsevier Ltd. All rights reserved. Keywords: Renewable energy sources; Brazilian electrical sub-sector; Support mechanisms
1. Introduction In the mid-1970s, the first renewable energy projects in rural areas of the Brazilian northeast were completed. These projects were promoted through agreements between the Brazilian and German governments,1 and later in the 1990s, between the Brazilian and US governments.2 Nongovernmental organizations, communities and public electric utilities supported the implementation of the offgrid projects that emerged from these agreements. At the beginning of 1994, two government programs to supply electricity in rural areas commenced. The first program dealt with electrical generation in situ with renewable energies (Energy Development Program in Corresponding author. Tel.:+52 55 12421853.
E-mail address: [email protected] (B.J. Ruiz). Wobben Windpower (2002), Wobben Windpower Enercon, RIO 02— World Climate & Energy Event, January 6–11, Rio de Janeiro, Brazil, pp. 137–144. 2 Taylor, R. (1997), Joint U.S./Brazilian Renewable Energy Rural Electrification Project, Renewables for Sustainable Village Power (RSVP)—Project Brief, National Renewable Energy Laboratory (NREL), www.rsvp.nrel.gov. 1
0301-4215/$ - see front matter r 2006 Elsevier Ltd. All rights reserved. doi:10.1016/j.enpol.2006.10.023
States and Municipalities—PRODEEM (initials in Spanish), and the second program dealt with spread of electrical grid (Light in the Program). By using complementary cycles of water and wind and the idea of electrical diversification, in 2001, wind energy and small hydroelectric stations were promoted through the PROEO´LICA (1050 MW) and PCH-COM (1200 MW) programs, established by Brazilian government. In 2002, the Energy Alternative Sources Incentive Program—(PROINFA, initials in Spanish) (3300 MW) was prepared and is currently in force. The purpose in this work is to evaluate the aims of the above-mentioned programs, in order to identify successes and contradictions in the preparation and execution of such programs, so as to provide ideas that may be implemented to channel the renewable energy policies. 2. Energy development program in states and municipalities—PRODEEM (1994–2001) PRODEEM took effect on December 27, 1994, through presidential decree. This program seeks to offer electrical supply in rural areas through renewable technologies such
ARTICLE IN PRESS B.J. Ruiz et al. / Energy Policy 35 (2007) 2989–2994
2990 Table 1 Aims of PRODEEM Year
Projects
Benefited population
Million US$a
1996 1997 1998 1999
300 1000 3000 5000
120,000 400,000 1,200,000 2,000,000
4.95 13.85 34.33 27.52
Source: Mancini E (2002), Programa de Desenvolvimento Energe´tico de Estados e Municı´pios (PRODEEM), Departamento Nacional de Desenvolvimento Energe´tico (DNDE)-Ministerio de Minas y Energia (MME), http://www.mct.gov.br/clima/comunic_old/prodeem.htm. a Change rates: 1996 R$1.009/US$1; 1997 R$1.083/US$1; 1998 R$1.165/ US$1; 1999 R$1.817/US$1. http://www.bcb.gov.br/.
as photovoltaic and wind systems, small hydroelectric stations, and fuel from biomass.3 The objectives of the program are: 1. To install small electrical generation systems in isolated communities in order to satisfy basic needs. 2. To support incomes, to create new jobs, and to increase the worth of rural production. 3. To promote renewable technologies and provide technical training to enable communities to install, operate and maintain such technologies. 4. To increase the supply of energy through renewable sources. Table 1 shows the annual objectives of the program, which are established according to the number of projects, the population benefited and financial support. PRODEEM was developed in six stages in which the photovoltaic systems prevailed. In the first two stages, which were responsible for the Electrical Energy Research Center, 1189 systems of electrical supply for dwelling, water pumping and public lighting were installed with an electrical capacity of 600.5 kWp. In the third and fourth stages, which were responsible for the Department of Mining and Energy, 3753 systems of energy supply for dwelling, and water pumping were installed with an electrical capacity of 2222 kWp. There was an intermediate stages between the third and fourth stage, in which 800 water pumping systems were installed exclusively. In the fifth stage 3000 systems of energy supply for dwelling were installed, with an electrical capacity of 2172 kWp. According to Department of Science and Technology data, on the completion of the program, 8742 photovoltaic systems had been installed achieving an electrical capacity of 5229.5 kWp. (Table 2) Evaluations of the PRODEEM scopes performed by government institutions do not clarify whether or not all 3 Mancini, E. (2002), Programa de Desenvolvimento Energe´tico de Estados e Municı´ pios (PRODEEM), Departamento Nacional de Desenvolvimento Energe´tico (DNDE)—Ministe´rio de Minas y Energia (MME), http://www.mct.gov.br/clima/comunic_old/prodeem.htm.
the projects were executed, or whether the 8742 systems installed belong to the total projects, or to a share of them. The results achieved by PRODEEM indicated several weaknesses in the formulation of the program’s objectives, some of which are presented below: 1. Photovoltaic technology prevailed, whereas wind systems and small hydroelectric stations were excluded. 2. According to the Brazilian control institution that audited the program, 46% of systems installed were mislaid and 36% were installed correctly but soon stopped working.4 Therefore, the target number of population benefited was not achieved. Moreover, the audit disclosed that technical training in the maintenance of the systems5 did not meet its objective. 3. The execution of PRODEEM was by international public bid that involved the importation of all equipment, thus discouraging the domestic industry. The control institution’s report revealed flaws in the execution of the program. As a consequence, in 2003, the Department of Mining and Energy implemented the PRODEEM Training and Revitalization Plan in order to recover installed systems, regulate assets and provide technical training to involve populations in the program.6 In 2005, PRODEEM’s objectives were transferred to the light for all program.7 3. Emergency wind energy program—PROEO´LICA (2001–2004) The Energy Crisis Management Council created the Emergency Wind Energy Program (PROEO´LICA, initials in Spanish) through the 24th Resolution passed in July 2001. The objective of the program was to promote an alternative model for economic, social, and environmental development based on wind energy, since wind cycles complement water cycles.8 The goal was to install a capacity of 1050 MW with wind turbines in order to 4 Verdesio, J. (2003), Polı´ ticas pu´blicas para la difusio´n de las nuevas energı´ as renovables (NER) en Brasil, Coloquio ‘‘Energı´ a, Reformas Institucionales y Desarrollo en Ame´rica Latina’’, Universidad Nacional Auto´noma de Me´xico y Universite´ PMF de Grenoble, 5–7 Noviembre, p. 743, Me´xico. 5 Galdino, M., Lima, J. (2002), PRODEEM—The Brazilian Programme for Rural Electrification Using Photovoltaics, RIO 02—Word Climate & Energy Event, January 6–11, Rio de Janeiro (Brazil), pp. 77–84. 6 Leonelli, P. (2004), PRODEEM Programa de Desenvolvimento Energe´tico dos Estados e Municı´pios—O programa de revitalizac- a˜o e capacitac- a˜o, Apresentac- a˜o no ‘‘Seminario de difusio´n de experiencias de transferencia de tecnologı´ as con el uso de energias renovables’’, Universidade de Sa˜o Paulo (USP), setembro 8–9, Sa˜o Paulo, Brazil. 7 Goldemberg, J., Rovere, E., Coelho, S., Simo˜es, A., Guardabassi, P., Moreira, F. (2005), Renewable energy technologies to improve energy access in Brazil, Sa˜o Paulo, Brazil. 8 Amarante, O., Schultz, D., Bittencourt, R., Rocha, N. (2001), ‘‘Wind/ Hydro complementary seasonal regimen in Brazil’’, DEWI Magazin, No. 19, August, Germany, pp. 79–86.
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2991
Table 2 PRODEEM 1994–2001 Systemsa
Electricity Water pumping Public lighting Total
Institution
Quantity kWp Quantity kWp Quantity kWp Quantity kWp
Stages
Total
I, Jun-96, CEPEL
II, Mar-97, CEPEL
III, Nov-97, MME
Pumping, IV, Sep-99, Oct-98, MME MME
V, Dic-01, MME
190.0 87.0 54.0 78.0 137.0 7.5 381.0 172.5
387 200 179 211 242 17 808 428
677 419 176 135 x x 853 554
x x 800 235 x x 800 235
3000 2172 x x x x 3000 2172
1660 972 1240 696 x x 2900 1668
5914.0 3850.0 2449.0 1355.0 379.0 24.5 8742.0 5229.5
Source: Galdino and Lima (2002), PRODEEM—The Brazilian Program for Rural Electrification Using Photovoltaics, RIO 02-World Climate & Energy Event, January 6–11, Rio de Janeiro (Brazil). a Photovoltaic systems only.
connect them to the electrical network between 2001 and 2003. The program began with the acquisition of windgenerated electricity by Electrobra´s and its subsidiaries over a period of 15 years. The price was fixed by the Energy Regulatory Commission,9 who used to study and approve projects. In 2003, the amount of permits requested surpassed the objective of 1050 MW, and in 2004, the electrical capacity of the permits requested reached 3319.48 MW10; however, there are currently 2855 MW in operation and 2083 MW under construction. PROEO´LICA was closed and in 2004, its objectives were transferred to the PROINFA11 program. 4. Program for the commercialization and development of small hydroelectric stations PCH-COM (2001–2003) The program was created by Electrobra´s with the purpose of diversifying the energy matrix and encouraging private investment in the execution of projects and the upgrade of small hydroelectric stations for interconnection to the national electrical network.12 The objective of the program was to install 1200 MW from 2001 to 2003, which would be installed in portions of 400 MW each year.13 Eletrobra´s guaranteed the purchase of generated electricity by private sectors, while the National Social and Economical Development Bank granted loans to execute the projects. Currently, 9 Caˆmara de Gesta˜o da Crise da Energia Ele´trica (2001), Resoluc- a˜o No. 24, de 5 Julho de 2001, Presideˆncia da Repu´blica, Brazil. 10 Federac- a˜o das Indu´strias do Estado do Ceara´ (2005), Energia eo´lica no contexto do setor ele´trico brasileiro, http://www.fiec.org.br/palestras/ pequenas/Energia_eolica_no_contexto_do_setor_eletrico.htm. 11 Goldemberg, J. (2005), op cit. 12 http://www.eletrobras.gov.br/EM_Programas_PCH-COM/conceituacao.asp. 13 Winrock International Brazil (2002), Trade Guide on Renewable Energy in Brazil, U.S. Agency for International Development; Bureau for Economic Growth, Agriculture and Trade (EGAT) Office of Energy; Energy Program USAID/Brazil, Brazil.
1361.3 MW have been installed from small hydroelectric stations14 the information available does not stipulate the portion that corresponds to the objective.
5. Alternative energy source inventive program (PROINFA) (2002–2006 and 2006–2022) Law No.10.438, passed on April 26, 2002,15 was modified16 by Law No. 10.762 in 2003 to establish and define PROINFA’s administrative procedures. The objective of the program was to increase the portion of renewable electricity so as to diversify the energy matrix through the installation of 3300 MW, which is divided in equally among wind turbine, small hydropower stations and biomass plants. PROINFA’s objective includes the goals foreseen in the PROEO´LICA program. The program promotes Autonomous Independent Producers17 to generate electricity, whose sale agreements are guaranteed by Eletrobra´s for a period of 20 years at a tariff fixed by the Department of Mining and Energy.18 The execution of the program was planned in two stages. The first was conducted from 2002 to 2006, and the second is planned for 2006–2022. 3300 MW would be installed at the first stage divided into equal portions of wind energy, small hydroelectric stations and biomass plants. 14
www.aneel.gov.br. Lei No. 10.438 de 26 de abril de, 2002, D.O. de 29.04.2002, sec- a˜o 1, p. 1, v. 139, n. 81-A. 16 Lei No. 10.762 de 11 de novembro de, 2003, D.O. de 12.11.2003, sec- a˜o 1, p. 130, v. 140, n. 220. 17 ‘‘Independent producer of electricity is considered autonomous when his society, which is not subsidiary, neither is controlled or linked by a public utility of generation, transmission, or distribution of electricity, nor of its subsidiaries’’. ‘‘Independent producer of electricity: juridical person or consortiums whom receive grant or authorization in order to produce electricity so as to trade all electricity or share of her with own risk’’. Decreto No. 5025, (2004), Diario Oficial, 31 de marzo, Brazı´lia, Brazil. 18 Time to buy renewable electricity of the 10.438 Law was modified in 2003 with the 10.762 Law, from 15 to 20 years. Lei No. 10.762 de 11 de novembro de 2003, op cit. 15
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2992 Table 3 Capacity selected by eletrobra´s Installed capacity (MW)
2000
2001
2002
2003
2004
Total
Wind Biomass SHS Total
— — 2200 2200
2520 — 154,44 179,64
41905 4300 427,31 889,36
655,75 300,82 496,25 1452,82
— 998,23 — 998,23
1100,00 1342,05 1100,00 3542,05
Source: Own information of www.eletrobras.gov.br.
Table 4 Economic values by technologies Electrical station
Economic Value (US$/MWh)
Minimum value US$/MWh
Small hydroelectricity stations Wind RCF ¼ RCFmin RCFminoRCFo RCFmax RCF ¼ RCFmax
40.07 69.98 Equationa 61.71
40.07 51.52 51.52 51.52
Biomass
32.11 35.34 34.71 57.90
28.62 28.62 28.62 28.62
Cane bagasse Rice shell Wood Gas from biomass
RCF: Reference Capacity Factor. Source: Ministry of Mining and Energy (MME), Portaria No. 45, March 30, 2004, Dia´rio Oficial da Unia˜o-section 1. a Change rates: 1996 R$1.009/US $1; 1997 R$1.083/US $1; 1998 R$1.165/US$1; 1999 R$1.817/US $1. http://www.bcb.gov.brl
Eletrobra´s held two public bids19 to contract20 the electrical capacity. After the first bid, Eletrobra´s selected 115 projects that together totaled 2769.51 MW, which were divided as follows: 569.51 MW from biomass plants, 1100 MW from wind turbines and 1100 MW from small hydroelectricity stations. The second bid was held to meet the biomass electrical capacity until the objective was reached. Therefore, 33 projects with an electrical capacity of 772.54 MW were selected. Table 3 shows the electrical capacity divided according to technology available during 2000–2004. The projects selected prior to PROINFA came from the PROEO´LICA and PCH-COM programs. According to Energy Regulatory Commission information, by March 2006, 2855 MW had been installed from wind turbines, 1443.8 MW from micro and small hydroelectricity stations, and 3299 MW from biomass. PROINFA is considering paying a feed-in tariff to generators for renewable electricity that they supply to the national electrical network. Tariffs are divided according to the energy source. Eletrobra´s’s management, financial and fiscal costs were incurred from the purchase of renewable electricity are passed on to the end consumers, with the 19 Ministe´rio de Minas y Energia (MME), Portaria No 45 de 30 de marc% o de, 2004, Dia´rio Oficial da Unia˜o—sec- a˜o 1. 20 Approve projects to contract were listed according to the issued date of environmental license in order to install the project. Second selection criterion was to define an electrical capacity maximum to be installed by technology for each state. Ibid.
exception of those that consume less than 80 kWh/month.21 (Table 4) The feed-in tariff is a mechanism that has been utilized successfully in Germany.22 Initially, it was applied as a subsidy more than as a regulatory mechanism. Current law modified the former mechanism and now the mechanism is totally regulatory. This was useful to promote both the generation of electricity and German industry. The Brazilian government should consider the completed path of this mechanism and therefore will be able to diversify energy matrix, to implement technological improvements and develop the national renewable energy industry. PROINFA projects may benefit from the energy development account, which was created by law for a term 21
Lei No. 10.762 de 11 de novembro de, 2003, op cit. FCR: Reference capacity factor of the Station; VETEF_E: Economical value of wind energy; ER: Reference energy by Energy Regulatory Commission; p: Electrical losses; CP: consumed electricity by the station without to consider losses; P: Installed power; FCRmax: Maximum reference capacity factor 0.419347; FCRmin: Minimum reference capacity factor 0.324041. VETEF_E ¼ VETEF_Emax VETEF_Emax VETEF_Emin FCRmax FCRmin ðFCR FCRmin Þ p ER 1 100 CP FCR ¼ P 8760 22
StrEG (by its name in German) was substituted by EGG in 2000.
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of 25 years through complementary credits that are calculated based on the difference between the economic values of technology and competitive energy. The second stage of the program seeks to increase the share of renewable electricity (wind energy, biomass, and small hydroelectricity stations), in order to achieve 10% of gross electricity consumption by 2022. During this stage, the 20-year contracts with Eletrobra´s will remain in force and the issuance of energy certificates is being considered so as to confirm the generator’s legal status, energy source, and amount of electricity purchased annually. The Department of Mining and Energy proposed that renewable energy certificates could be used to certify the reduction in the emissions of greenhouses gases. It is highlighted that the trade of the benefits arises from renewable energies is contradictory with the aims of environmental compatibility that they provide. Selling environmental benefits of the renewable energy sources in order to permit other regions to continue emitting greenhouse gases is a contradiction, because the sustainability levels sought will not be achieved. Currently, there is no regulatory decree for the second part of the program. 6. Light for all Program (2003–2008) The objective of the program is to supply electricity to 12 million people.23 This program must be considered as under analysis because its coverage could be carried out by decentralized systems, where renewable energy sources would be maintained. Moreover, PRODEEM was incorporated to the ‘‘Light for All’’ Program in 2005. Currently, the PROINFA and Light for All programs are in force; however, their objectives are not linked. The first program tries to promote renewable energy in order to interconnect it to the national electricity network, while the second seeks to supply minimum cost electricity. The minimum cost criterion excludes renewable energy, whereas the interconnection of renewable energy sources to the national electricity network excludes isolated rural areas. 7. Conclusions Brazil does not have the same energy security or environmental problems as other more industrialized nations, where the use of renewable energy is imperative. Brazil also has an energy matrix in which renewable energy sources participate to a great extent, which permits the gradual implementation of new legislative measures. The Brazilian government implemented programs that take advantage of renewable energy sources two decades ago. Programs such as PRODEEM, PROEO´LICA and PCH-COM represented the first experiences in promoting renewable energy, all them aimed at diversifying the energy
matrix; however, their poor results did not achieve the objectives. PRODEEM made more obvious mistakes. According to the Brazilian control institution report, the program only installed 18% of the systems planned. Moreover, the PROEO´LICA program, which was born from an electrical supply crisis, planned to install 1050 MW and actually there is installed 28.5 MW. The PCH-COM program seems to have achieved the best results of the three programs, since it has surpassed the planned installation of 1200 MW by installing 1345 MW. PROINFA has achieved its biomass targets. Of the 1100 MW of wind energy planned for the first stage 28.5 MW has been installed and 1345 MW of the power generated from small hydroelectric stations is already installed, of which 1200 MW comes from the PCH-COM program; therefore, the additional installed capacity is 124 MW. In the same sense, renewable energy planning shows continuous deficiencies in the achievement of the programs’ targets because said programs are substituted by others without any rigorous evaluation of the advances made and prior faults are not corrected in the new programs. The Federal Government’s decision to postpone the operation of projects until 2008 illustrates the difficulties and contradictions of the program24; therefore, more time will be required to meet its objectives. The programs have been created in such a manner that they put the communities and local institutions to one side, in the knowledge that they are fundamental players for formulating of public energy policies. In the first programs, the role of the communities and local institutions was instrumental and subsequently their presence disappeared. The market system that promotes the diversification policies appears to be an obstacle to such purpose because the private sector will participate in these programs only if its profit expectations are satisfied and such profitability cannot be guaranteed by potential electricity consumers in isolated rural areas. The diversification criterion for the energy matrix, which has promoted renewable energy sources, should be linked to other criteria to formulate integrated policies, such as increasing the coverage of the electricity supply, the scientific and technological encouragement of renewable energy sources and fostering the national renewable energy industry. Brazil could make use of agreements such as the United Nations Framework Convention on Climate Change to transfer scientific information and technology in order to promote the national renewable energy technology industry.25 In spite of the poor results of the programs implemented, government policy on electricity from renewable energy sources could be strengthened through improvements in its formulation. To achieve this, five elements must be 24
www.aneel.bov.br. Naciones Unidas, (1992), Convencio´n Marco de las Naciones Unidas sobre Cambio Clima´tico. 25
23
Goldemberg, J., (2005), op cit.
2993
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B.J. Ruiz et al. / Energy Policy 35 (2007) 2989–2994
included in order to restructure the policy and to define its scope within Brazilian energy policy. These elements would consist of: 1. Defining a medium to long-term objective: A quantitative objective encourages different sectors to concentrate their efforts to accomplish such objective, to assign the right points in time to evaluate the formulation and implementation of the policies and permits the successes or failures of the policy to be defined. The aim of PROINFA’s second stage (10% of annual electricity consumption from wind energy, biomass and SHS in 2022) is not a leading aim of the renewable energy source electricity policy in Brazil. The objective should be divided according to all the technologies and must consider the national scope, specifically to include isolated areas as interconnected zones. PROINFA fails to consider these two points in its objectives for 2022. 2. Establishing relationship among institutions and coordinating among different administrative levels: Renewable energy source policy requires a certain level of coordination among public institutions, especially between the Departments of Energy and of the Environment. Moreover, it is advisable to coordinate functions among different administrative levels in order to implement plans, programs and projects. 3. Defining a national technological integration index: This index should be in conjunction with a research and technological development program to foster the national renewable energy technology industry in order to generate electricity. The program should emphasize the roles of the national reference centers,26 which were created by the Department of Energy, the Department of Science and Technology, the Energy Regulatory Agency and National Oil Agency in order to promote renewable energy sources. 4. Introducing of an incentives group: The feed-in tariff granted by PROINFA should be modified in order to bear in mind the locations where projects are implemented and whether or not they are interconnected to the national electricity grid. Moreover, feed-in tariffs for other renewable technologies should be defined; for instance, for photovoltaic solar energy. Introducing complementary support systems is fundamental to encourage renewable electricity generators; therefore, feed in tariffs should be used in conjunction with fiscal and financial incentives. 5. To establish obligatory and incremental purchases of renewable electricity for supply companies with regard to a renewable energy electricity program.
26 CERPCH (national reference center of small hydropower stations), CRESESB/CEPEL (national reference center for solar and wind energy ‘‘Se´rgio de Sa´lvio Brito’’) y CENBIO (national reference center of biomass).
References Amarante, O., Schultz, D., Bittencourt, R., Rocha, N., 2001. Wind/hydro complementary seasonal regimen in Brazil. DEWI Magazin, No. 19, August, Germany, pp. 79–86. Caˆmara de Gesta˜o da Crise da Energia Ele´trica, 2001. Resoluc- a˜o No. 24, de 5 Julho de 2001, Presideˆncia da Repu´blica, Brasil. Decreto No. 5025, 2004. Dia´rio Oficial, 31 de marc- o, Brazı´ lia (Brazil). Galdino, M., Lima, J., 2002. PRODEEM—The Brazilian Programme for Rural Electrification Using Photovoltaics, RIO 02-World Climate & Energy Event, January 6–11, Rio de Janeiro, Brazil, pp. 77–84. Goldemberg, J., Rovere, E., Coelho, S., Simo˜es, A., Guardabassi, P., Moreira, F., 2005. Renewable energy technologies to improve energy access in Brazil. Sa˜o Paulo, Brazil. Lei No. 10.438 de 26 de abril de 2002, D.O. de 29.04.2002, sec- a˜o 1, p. 1, v. 139, n. 81-A. Lei No. 10.762 de 11 de novembro de 2003, D.O. de 12.11.2003, sec- a˜o 1, p. 130, v. 140, n. 220. Leonelli, P., 2004. PRODEEM Programa de Desenvolvimento Energe´tico dos Estados e Municı´ pios – O programa de revitalizac- a˜o e capacitac- a˜o, Apresentac- a˜o no ‘‘Seminario de difusio´n de experiencias de transferencia de tecnologı´ as con el uso de energias renovables’’, Universidade de Sa˜o Paulo (USP), Setembro 8–9, Sa˜o Paulo, Brazil. Mancini, E., 2002. Programa de Desenvolvimento Energe´tico de Estados e Municı´ pios (PRODEEM), Departamento Nacional de Desenvolvimento Energe´tico (DNDE)-Ministerio de Minas y Energia (MME), /http://www.mct.gov.br/clima/comunic_old/prodeem.htmS Ministe´rio de Minas y Energia (MME), 2004. Portaria No. 45 de 30 de marc- o de 2004, Dia´rio Oficial da Unia˜o-sec- a˜o 1, Brazı´ lia (Brazil). Naciones Unidas, 1992. Convencio´n Marco de las Naciones Unidas sobre Cambio Clima´tico. Taylor, R., 1997. Joint U.S./Brazilian Renewable Energy Rural Electrification Project. Renewables for Sustainable Village Power (RSVP)—Project Brief, National Renewable Energy Laboratory (NREL), /www.rsvp.nrel.govS Verdesio, J., 2003. Polı´ ticas pu´blicas para la difusio´n de las neuvas energı´ as renovables (NER) en Brazil, Coloquio ‘‘Energı´ a, Reformas Institucionales y Desarrollo en Ame´rica Latina’’, Universidad Nacional Auto´noma de Me´xico y Universite´ PMF de Grenoble, 5–7 Noviembre, Me´xico D.F. (Me´xico), pp. 733–750. Winrock International Brazil, 2002. Trade Guide on Renewable Energy in Brazil. U.S. Agency for International Development; Bureau for Economic Growth, Agriculture and Trade (EGAT) Office of Energy; Energy Program USAID/Brazil, Brazil. Wobben Windpower, 2002. Wobben windpower enercon. RIO 02-World Climate & Energy Event, January 6–11, Rio de Janeiro, Brazil, pp. 137–144.
Further Reading /http://www.aneel.gov.brS /http://www.bcb.gov.brS /http://www.eletrobras.gov.br/EM_Programas_PCH-COM/conceituacao.aspS /http://www.fiec.org.br/palestras/pequenas/Energia_eolica_no_contexto_do_setor_eletrico.htmS /http://www.mct.gov.br/clima/comunic_old/prodeem.htmS /http://www.rsvp.nrel.govS
Energy Policy 35 (2007) 2989–2994 www.elsevier.com/locate/enpol
Analysis and perspectives of the government programs to promote the renewable electricity generation in Brazil B.J. Ruiza,, V. Rodrı´ gueza, C. Bermannb a
Postgraduate Degree in Energy Engineering, Universidad Nacional Auto´noma de Me´xico, Av. Universidad 3000, Ciudad Universitaria, C.P. 04510, Ciudad de Me´xico, Me´xico b Instituto de Eletrote´cnica e Energia, Universidade de Sa˜o Paulo, Av. Luciano Gualberto 1289, Cidade Universita´ria, CEP 05508-900, Sa˜o Paulo, Brazil Received 18 July 2006; accepted 27 October 2006 Available online 11 December 2006
Abstract Government programs to encourage renewable electricity production in Brazil are analyzed in order to evaluate aims and identify problems in the execution of such programs in order to provide ideas to channel them. In terms of methodology, the analysis is based in a chronologic study of the programs, in order to establish whether or not renewable energy policies have been linked. The paper concludes that already-executed programs and those in progress have deficiencies that hinder the achievement of their goals; therefore diversification policies for renewable energy will not be achieved in the foreseen timeframe. Therefore, certain policy changes are proposed. r 2006 Elsevier Ltd. All rights reserved. Keywords: Renewable energy sources; Brazilian electrical sub-sector; Support mechanisms
1. Introduction In the mid-1970s, the first renewable energy projects in rural areas of the Brazilian northeast were completed. These projects were promoted through agreements between the Brazilian and German governments,1 and later in the 1990s, between the Brazilian and US governments.2 Nongovernmental organizations, communities and public electric utilities supported the implementation of the offgrid projects that emerged from these agreements. At the beginning of 1994, two government programs to supply electricity in rural areas commenced. The first program dealt with electrical generation in situ with renewable energies (Energy Development Program in Corresponding author. Tel.:+52 55 12421853.
E-mail address: [email protected] (B.J. Ruiz). Wobben Windpower (2002), Wobben Windpower Enercon, RIO 02— World Climate & Energy Event, January 6–11, Rio de Janeiro, Brazil, pp. 137–144. 2 Taylor, R. (1997), Joint U.S./Brazilian Renewable Energy Rural Electrification Project, Renewables for Sustainable Village Power (RSVP)—Project Brief, National Renewable Energy Laboratory (NREL), www.rsvp.nrel.gov. 1
0301-4215/$ - see front matter r 2006 Elsevier Ltd. All rights reserved. doi:10.1016/j.enpol.2006.10.023
States and Municipalities—PRODEEM (initials in Spanish), and the second program dealt with spread of electrical grid (Light in the Program). By using complementary cycles of water and wind and the idea of electrical diversification, in 2001, wind energy and small hydroelectric stations were promoted through the PROEO´LICA (1050 MW) and PCH-COM (1200 MW) programs, established by Brazilian government. In 2002, the Energy Alternative Sources Incentive Program—(PROINFA, initials in Spanish) (3300 MW) was prepared and is currently in force. The purpose in this work is to evaluate the aims of the above-mentioned programs, in order to identify successes and contradictions in the preparation and execution of such programs, so as to provide ideas that may be implemented to channel the renewable energy policies. 2. Energy development program in states and municipalities—PRODEEM (1994–2001) PRODEEM took effect on December 27, 1994, through presidential decree. This program seeks to offer electrical supply in rural areas through renewable technologies such
ARTICLE IN PRESS B.J. Ruiz et al. / Energy Policy 35 (2007) 2989–2994
2990 Table 1 Aims of PRODEEM Year
Projects
Benefited population
Million US$a
1996 1997 1998 1999
300 1000 3000 5000
120,000 400,000 1,200,000 2,000,000
4.95 13.85 34.33 27.52
Source: Mancini E (2002), Programa de Desenvolvimento Energe´tico de Estados e Municı´pios (PRODEEM), Departamento Nacional de Desenvolvimento Energe´tico (DNDE)-Ministerio de Minas y Energia (MME), http://www.mct.gov.br/clima/comunic_old/prodeem.htm. a Change rates: 1996 R$1.009/US$1; 1997 R$1.083/US$1; 1998 R$1.165/ US$1; 1999 R$1.817/US$1. http://www.bcb.gov.br/.
as photovoltaic and wind systems, small hydroelectric stations, and fuel from biomass.3 The objectives of the program are: 1. To install small electrical generation systems in isolated communities in order to satisfy basic needs. 2. To support incomes, to create new jobs, and to increase the worth of rural production. 3. To promote renewable technologies and provide technical training to enable communities to install, operate and maintain such technologies. 4. To increase the supply of energy through renewable sources. Table 1 shows the annual objectives of the program, which are established according to the number of projects, the population benefited and financial support. PRODEEM was developed in six stages in which the photovoltaic systems prevailed. In the first two stages, which were responsible for the Electrical Energy Research Center, 1189 systems of electrical supply for dwelling, water pumping and public lighting were installed with an electrical capacity of 600.5 kWp. In the third and fourth stages, which were responsible for the Department of Mining and Energy, 3753 systems of energy supply for dwelling, and water pumping were installed with an electrical capacity of 2222 kWp. There was an intermediate stages between the third and fourth stage, in which 800 water pumping systems were installed exclusively. In the fifth stage 3000 systems of energy supply for dwelling were installed, with an electrical capacity of 2172 kWp. According to Department of Science and Technology data, on the completion of the program, 8742 photovoltaic systems had been installed achieving an electrical capacity of 5229.5 kWp. (Table 2) Evaluations of the PRODEEM scopes performed by government institutions do not clarify whether or not all 3 Mancini, E. (2002), Programa de Desenvolvimento Energe´tico de Estados e Municı´ pios (PRODEEM), Departamento Nacional de Desenvolvimento Energe´tico (DNDE)—Ministe´rio de Minas y Energia (MME), http://www.mct.gov.br/clima/comunic_old/prodeem.htm.
the projects were executed, or whether the 8742 systems installed belong to the total projects, or to a share of them. The results achieved by PRODEEM indicated several weaknesses in the formulation of the program’s objectives, some of which are presented below: 1. Photovoltaic technology prevailed, whereas wind systems and small hydroelectric stations were excluded. 2. According to the Brazilian control institution that audited the program, 46% of systems installed were mislaid and 36% were installed correctly but soon stopped working.4 Therefore, the target number of population benefited was not achieved. Moreover, the audit disclosed that technical training in the maintenance of the systems5 did not meet its objective. 3. The execution of PRODEEM was by international public bid that involved the importation of all equipment, thus discouraging the domestic industry. The control institution’s report revealed flaws in the execution of the program. As a consequence, in 2003, the Department of Mining and Energy implemented the PRODEEM Training and Revitalization Plan in order to recover installed systems, regulate assets and provide technical training to involve populations in the program.6 In 2005, PRODEEM’s objectives were transferred to the light for all program.7 3. Emergency wind energy program—PROEO´LICA (2001–2004) The Energy Crisis Management Council created the Emergency Wind Energy Program (PROEO´LICA, initials in Spanish) through the 24th Resolution passed in July 2001. The objective of the program was to promote an alternative model for economic, social, and environmental development based on wind energy, since wind cycles complement water cycles.8 The goal was to install a capacity of 1050 MW with wind turbines in order to 4 Verdesio, J. (2003), Polı´ ticas pu´blicas para la difusio´n de las nuevas energı´ as renovables (NER) en Brasil, Coloquio ‘‘Energı´ a, Reformas Institucionales y Desarrollo en Ame´rica Latina’’, Universidad Nacional Auto´noma de Me´xico y Universite´ PMF de Grenoble, 5–7 Noviembre, p. 743, Me´xico. 5 Galdino, M., Lima, J. (2002), PRODEEM—The Brazilian Programme for Rural Electrification Using Photovoltaics, RIO 02—Word Climate & Energy Event, January 6–11, Rio de Janeiro (Brazil), pp. 77–84. 6 Leonelli, P. (2004), PRODEEM Programa de Desenvolvimento Energe´tico dos Estados e Municı´pios—O programa de revitalizac- a˜o e capacitac- a˜o, Apresentac- a˜o no ‘‘Seminario de difusio´n de experiencias de transferencia de tecnologı´ as con el uso de energias renovables’’, Universidade de Sa˜o Paulo (USP), setembro 8–9, Sa˜o Paulo, Brazil. 7 Goldemberg, J., Rovere, E., Coelho, S., Simo˜es, A., Guardabassi, P., Moreira, F. (2005), Renewable energy technologies to improve energy access in Brazil, Sa˜o Paulo, Brazil. 8 Amarante, O., Schultz, D., Bittencourt, R., Rocha, N. (2001), ‘‘Wind/ Hydro complementary seasonal regimen in Brazil’’, DEWI Magazin, No. 19, August, Germany, pp. 79–86.
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2991
Table 2 PRODEEM 1994–2001 Systemsa
Electricity Water pumping Public lighting Total
Institution
Quantity kWp Quantity kWp Quantity kWp Quantity kWp
Stages
Total
I, Jun-96, CEPEL
II, Mar-97, CEPEL
III, Nov-97, MME
Pumping, IV, Sep-99, Oct-98, MME MME
V, Dic-01, MME
190.0 87.0 54.0 78.0 137.0 7.5 381.0 172.5
387 200 179 211 242 17 808 428
677 419 176 135 x x 853 554
x x 800 235 x x 800 235
3000 2172 x x x x 3000 2172
1660 972 1240 696 x x 2900 1668
5914.0 3850.0 2449.0 1355.0 379.0 24.5 8742.0 5229.5
Source: Galdino and Lima (2002), PRODEEM—The Brazilian Program for Rural Electrification Using Photovoltaics, RIO 02-World Climate & Energy Event, January 6–11, Rio de Janeiro (Brazil). a Photovoltaic systems only.
connect them to the electrical network between 2001 and 2003. The program began with the acquisition of windgenerated electricity by Electrobra´s and its subsidiaries over a period of 15 years. The price was fixed by the Energy Regulatory Commission,9 who used to study and approve projects. In 2003, the amount of permits requested surpassed the objective of 1050 MW, and in 2004, the electrical capacity of the permits requested reached 3319.48 MW10; however, there are currently 2855 MW in operation and 2083 MW under construction. PROEO´LICA was closed and in 2004, its objectives were transferred to the PROINFA11 program. 4. Program for the commercialization and development of small hydroelectric stations PCH-COM (2001–2003) The program was created by Electrobra´s with the purpose of diversifying the energy matrix and encouraging private investment in the execution of projects and the upgrade of small hydroelectric stations for interconnection to the national electrical network.12 The objective of the program was to install 1200 MW from 2001 to 2003, which would be installed in portions of 400 MW each year.13 Eletrobra´s guaranteed the purchase of generated electricity by private sectors, while the National Social and Economical Development Bank granted loans to execute the projects. Currently, 9 Caˆmara de Gesta˜o da Crise da Energia Ele´trica (2001), Resoluc- a˜o No. 24, de 5 Julho de 2001, Presideˆncia da Repu´blica, Brazil. 10 Federac- a˜o das Indu´strias do Estado do Ceara´ (2005), Energia eo´lica no contexto do setor ele´trico brasileiro, http://www.fiec.org.br/palestras/ pequenas/Energia_eolica_no_contexto_do_setor_eletrico.htm. 11 Goldemberg, J. (2005), op cit. 12 http://www.eletrobras.gov.br/EM_Programas_PCH-COM/conceituacao.asp. 13 Winrock International Brazil (2002), Trade Guide on Renewable Energy in Brazil, U.S. Agency for International Development; Bureau for Economic Growth, Agriculture and Trade (EGAT) Office of Energy; Energy Program USAID/Brazil, Brazil.
1361.3 MW have been installed from small hydroelectric stations14 the information available does not stipulate the portion that corresponds to the objective.
5. Alternative energy source inventive program (PROINFA) (2002–2006 and 2006–2022) Law No.10.438, passed on April 26, 2002,15 was modified16 by Law No. 10.762 in 2003 to establish and define PROINFA’s administrative procedures. The objective of the program was to increase the portion of renewable electricity so as to diversify the energy matrix through the installation of 3300 MW, which is divided in equally among wind turbine, small hydropower stations and biomass plants. PROINFA’s objective includes the goals foreseen in the PROEO´LICA program. The program promotes Autonomous Independent Producers17 to generate electricity, whose sale agreements are guaranteed by Eletrobra´s for a period of 20 years at a tariff fixed by the Department of Mining and Energy.18 The execution of the program was planned in two stages. The first was conducted from 2002 to 2006, and the second is planned for 2006–2022. 3300 MW would be installed at the first stage divided into equal portions of wind energy, small hydroelectric stations and biomass plants. 14
www.aneel.gov.br. Lei No. 10.438 de 26 de abril de, 2002, D.O. de 29.04.2002, sec- a˜o 1, p. 1, v. 139, n. 81-A. 16 Lei No. 10.762 de 11 de novembro de, 2003, D.O. de 12.11.2003, sec- a˜o 1, p. 130, v. 140, n. 220. 17 ‘‘Independent producer of electricity is considered autonomous when his society, which is not subsidiary, neither is controlled or linked by a public utility of generation, transmission, or distribution of electricity, nor of its subsidiaries’’. ‘‘Independent producer of electricity: juridical person or consortiums whom receive grant or authorization in order to produce electricity so as to trade all electricity or share of her with own risk’’. Decreto No. 5025, (2004), Diario Oficial, 31 de marzo, Brazı´lia, Brazil. 18 Time to buy renewable electricity of the 10.438 Law was modified in 2003 with the 10.762 Law, from 15 to 20 years. Lei No. 10.762 de 11 de novembro de 2003, op cit. 15
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2992 Table 3 Capacity selected by eletrobra´s Installed capacity (MW)
2000
2001
2002
2003
2004
Total
Wind Biomass SHS Total
— — 2200 2200
2520 — 154,44 179,64
41905 4300 427,31 889,36
655,75 300,82 496,25 1452,82
— 998,23 — 998,23
1100,00 1342,05 1100,00 3542,05
Source: Own information of www.eletrobras.gov.br.
Table 4 Economic values by technologies Electrical station
Economic Value (US$/MWh)
Minimum value US$/MWh
Small hydroelectricity stations Wind RCF ¼ RCFmin RCFminoRCFo RCFmax RCF ¼ RCFmax
40.07 69.98 Equationa 61.71
40.07 51.52 51.52 51.52
Biomass
32.11 35.34 34.71 57.90
28.62 28.62 28.62 28.62
Cane bagasse Rice shell Wood Gas from biomass
RCF: Reference Capacity Factor. Source: Ministry of Mining and Energy (MME), Portaria No. 45, March 30, 2004, Dia´rio Oficial da Unia˜o-section 1. a Change rates: 1996 R$1.009/US $1; 1997 R$1.083/US $1; 1998 R$1.165/US$1; 1999 R$1.817/US $1. http://www.bcb.gov.brl
Eletrobra´s held two public bids19 to contract20 the electrical capacity. After the first bid, Eletrobra´s selected 115 projects that together totaled 2769.51 MW, which were divided as follows: 569.51 MW from biomass plants, 1100 MW from wind turbines and 1100 MW from small hydroelectricity stations. The second bid was held to meet the biomass electrical capacity until the objective was reached. Therefore, 33 projects with an electrical capacity of 772.54 MW were selected. Table 3 shows the electrical capacity divided according to technology available during 2000–2004. The projects selected prior to PROINFA came from the PROEO´LICA and PCH-COM programs. According to Energy Regulatory Commission information, by March 2006, 2855 MW had been installed from wind turbines, 1443.8 MW from micro and small hydroelectricity stations, and 3299 MW from biomass. PROINFA is considering paying a feed-in tariff to generators for renewable electricity that they supply to the national electrical network. Tariffs are divided according to the energy source. Eletrobra´s’s management, financial and fiscal costs were incurred from the purchase of renewable electricity are passed on to the end consumers, with the 19 Ministe´rio de Minas y Energia (MME), Portaria No 45 de 30 de marc% o de, 2004, Dia´rio Oficial da Unia˜o—sec- a˜o 1. 20 Approve projects to contract were listed according to the issued date of environmental license in order to install the project. Second selection criterion was to define an electrical capacity maximum to be installed by technology for each state. Ibid.
exception of those that consume less than 80 kWh/month.21 (Table 4) The feed-in tariff is a mechanism that has been utilized successfully in Germany.22 Initially, it was applied as a subsidy more than as a regulatory mechanism. Current law modified the former mechanism and now the mechanism is totally regulatory. This was useful to promote both the generation of electricity and German industry. The Brazilian government should consider the completed path of this mechanism and therefore will be able to diversify energy matrix, to implement technological improvements and develop the national renewable energy industry. PROINFA projects may benefit from the energy development account, which was created by law for a term 21
Lei No. 10.762 de 11 de novembro de, 2003, op cit. FCR: Reference capacity factor of the Station; VETEF_E: Economical value of wind energy; ER: Reference energy by Energy Regulatory Commission; p: Electrical losses; CP: consumed electricity by the station without to consider losses; P: Installed power; FCRmax: Maximum reference capacity factor 0.419347; FCRmin: Minimum reference capacity factor 0.324041. VETEF_E ¼ VETEF_Emax VETEF_Emax VETEF_Emin FCRmax FCRmin ðFCR FCRmin Þ p ER 1 100 CP FCR ¼ P 8760 22
StrEG (by its name in German) was substituted by EGG in 2000.
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of 25 years through complementary credits that are calculated based on the difference between the economic values of technology and competitive energy. The second stage of the program seeks to increase the share of renewable electricity (wind energy, biomass, and small hydroelectricity stations), in order to achieve 10% of gross electricity consumption by 2022. During this stage, the 20-year contracts with Eletrobra´s will remain in force and the issuance of energy certificates is being considered so as to confirm the generator’s legal status, energy source, and amount of electricity purchased annually. The Department of Mining and Energy proposed that renewable energy certificates could be used to certify the reduction in the emissions of greenhouses gases. It is highlighted that the trade of the benefits arises from renewable energies is contradictory with the aims of environmental compatibility that they provide. Selling environmental benefits of the renewable energy sources in order to permit other regions to continue emitting greenhouse gases is a contradiction, because the sustainability levels sought will not be achieved. Currently, there is no regulatory decree for the second part of the program. 6. Light for all Program (2003–2008) The objective of the program is to supply electricity to 12 million people.23 This program must be considered as under analysis because its coverage could be carried out by decentralized systems, where renewable energy sources would be maintained. Moreover, PRODEEM was incorporated to the ‘‘Light for All’’ Program in 2005. Currently, the PROINFA and Light for All programs are in force; however, their objectives are not linked. The first program tries to promote renewable energy in order to interconnect it to the national electricity network, while the second seeks to supply minimum cost electricity. The minimum cost criterion excludes renewable energy, whereas the interconnection of renewable energy sources to the national electricity network excludes isolated rural areas. 7. Conclusions Brazil does not have the same energy security or environmental problems as other more industrialized nations, where the use of renewable energy is imperative. Brazil also has an energy matrix in which renewable energy sources participate to a great extent, which permits the gradual implementation of new legislative measures. The Brazilian government implemented programs that take advantage of renewable energy sources two decades ago. Programs such as PRODEEM, PROEO´LICA and PCH-COM represented the first experiences in promoting renewable energy, all them aimed at diversifying the energy
matrix; however, their poor results did not achieve the objectives. PRODEEM made more obvious mistakes. According to the Brazilian control institution report, the program only installed 18% of the systems planned. Moreover, the PROEO´LICA program, which was born from an electrical supply crisis, planned to install 1050 MW and actually there is installed 28.5 MW. The PCH-COM program seems to have achieved the best results of the three programs, since it has surpassed the planned installation of 1200 MW by installing 1345 MW. PROINFA has achieved its biomass targets. Of the 1100 MW of wind energy planned for the first stage 28.5 MW has been installed and 1345 MW of the power generated from small hydroelectric stations is already installed, of which 1200 MW comes from the PCH-COM program; therefore, the additional installed capacity is 124 MW. In the same sense, renewable energy planning shows continuous deficiencies in the achievement of the programs’ targets because said programs are substituted by others without any rigorous evaluation of the advances made and prior faults are not corrected in the new programs. The Federal Government’s decision to postpone the operation of projects until 2008 illustrates the difficulties and contradictions of the program24; therefore, more time will be required to meet its objectives. The programs have been created in such a manner that they put the communities and local institutions to one side, in the knowledge that they are fundamental players for formulating of public energy policies. In the first programs, the role of the communities and local institutions was instrumental and subsequently their presence disappeared. The market system that promotes the diversification policies appears to be an obstacle to such purpose because the private sector will participate in these programs only if its profit expectations are satisfied and such profitability cannot be guaranteed by potential electricity consumers in isolated rural areas. The diversification criterion for the energy matrix, which has promoted renewable energy sources, should be linked to other criteria to formulate integrated policies, such as increasing the coverage of the electricity supply, the scientific and technological encouragement of renewable energy sources and fostering the national renewable energy industry. Brazil could make use of agreements such as the United Nations Framework Convention on Climate Change to transfer scientific information and technology in order to promote the national renewable energy technology industry.25 In spite of the poor results of the programs implemented, government policy on electricity from renewable energy sources could be strengthened through improvements in its formulation. To achieve this, five elements must be 24
www.aneel.bov.br. Naciones Unidas, (1992), Convencio´n Marco de las Naciones Unidas sobre Cambio Clima´tico. 25
23
Goldemberg, J., (2005), op cit.
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included in order to restructure the policy and to define its scope within Brazilian energy policy. These elements would consist of: 1. Defining a medium to long-term objective: A quantitative objective encourages different sectors to concentrate their efforts to accomplish such objective, to assign the right points in time to evaluate the formulation and implementation of the policies and permits the successes or failures of the policy to be defined. The aim of PROINFA’s second stage (10% of annual electricity consumption from wind energy, biomass and SHS in 2022) is not a leading aim of the renewable energy source electricity policy in Brazil. The objective should be divided according to all the technologies and must consider the national scope, specifically to include isolated areas as interconnected zones. PROINFA fails to consider these two points in its objectives for 2022. 2. Establishing relationship among institutions and coordinating among different administrative levels: Renewable energy source policy requires a certain level of coordination among public institutions, especially between the Departments of Energy and of the Environment. Moreover, it is advisable to coordinate functions among different administrative levels in order to implement plans, programs and projects. 3. Defining a national technological integration index: This index should be in conjunction with a research and technological development program to foster the national renewable energy technology industry in order to generate electricity. The program should emphasize the roles of the national reference centers,26 which were created by the Department of Energy, the Department of Science and Technology, the Energy Regulatory Agency and National Oil Agency in order to promote renewable energy sources. 4. Introducing of an incentives group: The feed-in tariff granted by PROINFA should be modified in order to bear in mind the locations where projects are implemented and whether or not they are interconnected to the national electricity grid. Moreover, feed-in tariffs for other renewable technologies should be defined; for instance, for photovoltaic solar energy. Introducing complementary support systems is fundamental to encourage renewable electricity generators; therefore, feed in tariffs should be used in conjunction with fiscal and financial incentives. 5. To establish obligatory and incremental purchases of renewable electricity for supply companies with regard to a renewable energy electricity program.
26 CERPCH (national reference center of small hydropower stations), CRESESB/CEPEL (national reference center for solar and wind energy ‘‘Se´rgio de Sa´lvio Brito’’) y CENBIO (national reference center of biomass).
References Amarante, O., Schultz, D., Bittencourt, R., Rocha, N., 2001. Wind/hydro complementary seasonal regimen in Brazil. DEWI Magazin, No. 19, August, Germany, pp. 79–86. Caˆmara de Gesta˜o da Crise da Energia Ele´trica, 2001. Resoluc- a˜o No. 24, de 5 Julho de 2001, Presideˆncia da Repu´blica, Brasil. Decreto No. 5025, 2004. Dia´rio Oficial, 31 de marc- o, Brazı´ lia (Brazil). Galdino, M., Lima, J., 2002. PRODEEM—The Brazilian Programme for Rural Electrification Using Photovoltaics, RIO 02-World Climate & Energy Event, January 6–11, Rio de Janeiro, Brazil, pp. 77–84. Goldemberg, J., Rovere, E., Coelho, S., Simo˜es, A., Guardabassi, P., Moreira, F., 2005. Renewable energy technologies to improve energy access in Brazil. Sa˜o Paulo, Brazil. Lei No. 10.438 de 26 de abril de 2002, D.O. de 29.04.2002, sec- a˜o 1, p. 1, v. 139, n. 81-A. Lei No. 10.762 de 11 de novembro de 2003, D.O. de 12.11.2003, sec- a˜o 1, p. 130, v. 140, n. 220. Leonelli, P., 2004. PRODEEM Programa de Desenvolvimento Energe´tico dos Estados e Municı´ pios – O programa de revitalizac- a˜o e capacitac- a˜o, Apresentac- a˜o no ‘‘Seminario de difusio´n de experiencias de transferencia de tecnologı´ as con el uso de energias renovables’’, Universidade de Sa˜o Paulo (USP), Setembro 8–9, Sa˜o Paulo, Brazil. Mancini, E., 2002. Programa de Desenvolvimento Energe´tico de Estados e Municı´ pios (PRODEEM), Departamento Nacional de Desenvolvimento Energe´tico (DNDE)-Ministerio de Minas y Energia (MME), /http://www.mct.gov.br/clima/comunic_old/prodeem.htmS Ministe´rio de Minas y Energia (MME), 2004. Portaria No. 45 de 30 de marc- o de 2004, Dia´rio Oficial da Unia˜o-sec- a˜o 1, Brazı´ lia (Brazil). Naciones Unidas, 1992. Convencio´n Marco de las Naciones Unidas sobre Cambio Clima´tico. Taylor, R., 1997. Joint U.S./Brazilian Renewable Energy Rural Electrification Project. Renewables for Sustainable Village Power (RSVP)—Project Brief, National Renewable Energy Laboratory (NREL), /www.rsvp.nrel.govS Verdesio, J., 2003. Polı´ ticas pu´blicas para la difusio´n de las neuvas energı´ as renovables (NER) en Brazil, Coloquio ‘‘Energı´ a, Reformas Institucionales y Desarrollo en Ame´rica Latina’’, Universidad Nacional Auto´noma de Me´xico y Universite´ PMF de Grenoble, 5–7 Noviembre, Me´xico D.F. (Me´xico), pp. 733–750. Winrock International Brazil, 2002. Trade Guide on Renewable Energy in Brazil. U.S. Agency for International Development; Bureau for Economic Growth, Agriculture and Trade (EGAT) Office of Energy; Energy Program USAID/Brazil, Brazil. Wobben Windpower, 2002. Wobben windpower enercon. RIO 02-World Climate & Energy Event, January 6–11, Rio de Janeiro, Brazil, pp. 137–144.
Further Reading /http://www.aneel.gov.brS /http://www.bcb.gov.brS /http://www.eletrobras.gov.br/EM_Programas_PCH-COM/conceituacao.aspS /http://www.fiec.org.br/palestras/pequenas/Energia_eolica_no_contexto_do_setor_eletrico.htmS /http://www.mct.gov.br/clima/comunic_old/prodeem.htmS /http://www.rsvp.nrel.govS