Renewable Energy as a Tool to Assure Continuity of Low Emissions in the Brazilian Electric Power Sector

In the Brazilian Electric Sector more than 80% of its installed capacity is based on hydro and biomass energy. A new legal framework has imposed roles for renewable sources of energy, establishing that 10% of electric power must come from these sources over the next twenty years. Historically, hydro power has been the key source of electricity in Brazil. In spite of this, due to restructuring of the sector during the nineties, both natural gas and nuclear energy have become increasingly significant sources. Coal is still widely utilized in the southern part of the country. However, due to its predominately hydro nature, the system's operation is centralized and its dispatching optimized, with hydro and nuclear energy as low - cost/must - run sources, and natural gas and coal, which because of some local electrical inflexibilities and being more expensive fall into second place behind the must run sources. In April 2002, Brazilian Congress approved a law which created a stick and carrot policy to put the development of renewable energy (wind, biomass and small hydro) on the national agenda. The established policy was to be carried out in two phases, with the compulsory purchase by Eletrobrás of 3,300 MW of these sources up to 2006, and another additional 15% of the market annual expansion, with the goal of reaching 10% of the market supplied by those three sources in 20 years.