Energy Access in Brazil

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1 Taller Latinoamericano y del Caribe: Pobreza y el Acceso a la Energía Energy Access in Brazil Prof. Suani Coelho CENBIO Brazilian Reference Center on Biomass University of São Paulo Santiago, October, 2009

2 Brazilian Energy Supply (2008) Sugarcane products 16.4% Oil and derivatives 36.7% Biomass* 15.1% Hydroelectricity and electricity 13.9% Uranium and derivatives 1.5% Natural Gas 10.3% Coal and derivatives 6.2% * Includes fuel wood and charcoal Source: EPE, 2009

3 Brazilian Residential Sector Energy Supply by Source (2008) Fuelwood 34.6% LPG 26.5% Electricity 35.6% Other sources* 3.4% * Includes natural gas, kerosene and charcoal Source: EPE, 2009

4 Source: ONS website Brazilian Electric System

5 Introduction Scope of the study: energy access in urban and peri-urban areas. Lack of specific data on peri-urban areas!! Brazilian statistics characterizes population in urban and rural areas.

6 Energy access in Brazil an overview

7 Energy Access x HDI

8 Access Level at Brazilian regions versus HDI North Region Northeast Region Source: IBGE, 2001

9 Source: IBGE, 2001 Permanent private residences and permanent population in urban and rural areas (in millions), 2000

10 Energy access increase 1991 to 2002 in households at urban and rural areas Source: IBGE, 1992; MME, 2003

11 There are presently near 1,000 power plants supplying electricity for isolated cities and villages in the Amazon using diesel oil. Almost 700 units have an installed power capacity below 500 kw. In particular, there was a lack of incentives and obligations to implement rural electrification programs, mainly in Amazon, as well as to improve supply to low-income consumers and to sustain existing off-grid projects.

12 Brazilian Amazonia Amazonia: 5.2 million km 2 (60% of Brazilian territorial area). 7 states

13

14 Amazon Region - Energy Access Current Situation High consumption of diesel oil in isolated communities: 810,000 m 3 per year In 2004, Brazil imported 2,7 million m 3 of diesel (expenditures of US$ 827 million); High costs of diesel oil; not affordable for the local people; Existing old engines frequent interruptions difficult to replace components (spare parts)

15 The electricity supply plays an important role in the increase of life standards: it allows high quality lighting, clean water, health care, communications a frequently mentioned figure for a minimum consumption level is 600 kwh per household per year (or 50 kwh per household per month). must be affordable The electrification of such small remote communities conventional supply presents significant barriers: high costs of the transmission lines transportation of diesel oil very low profit of the community residents Need to develop local economic activities. using

16 LPG Program for Cooking Purposes Distribution network all over the country. Accessible by 98 % of all Brazilian households and 93 % of rural households [Census, 2002]. Replaced fuelwood From 1950 through 2001 the Brazilian federal government regulated LPG final prices to consumers subsidies equalized the administered prices throughout the whole country. By 2000, around US$ 100 million was being spent annually to subsidize LPG in Brazil. In January 2002 subsidies were removed international prices of the product transferred to the consumer. Law 10453/02 created a program named Auxílio-Gas (literally gas assistance ), which would transfer to low-income families subsidies for residential LPG. Subsidies nowadays are included in Bolsa Família, but the previous policy appears to be more adequate to stimulate LPG consumption since it reached all LPG consumers.

17 Existing rural electrification programs in Brazil

18 Programmes Luz no Campo (Light in the Countryside) largest rural electrification program implemented in Brazil. Since 1999: 2,235,025 kva installed 560,000 families 2.8 million people PRODEEM (Program for Energy Development in Municipalities) the main government sponsored off-grid electrification program : 3 MW in PV installed to 3,050 villages, 604,000 people benefited 2000: 1050 Solar home systems, 104,000 people benefited 2001: 1086 SHS, 3,000 community systems Luz para Todos (Light for Everyone) - Oct, 2003 energy access to 12 million inhabitants up to 2008 investment required R$ 7 billion, being 5.3 billion from the Federal Government and R$ 1.7 billion from State Governments and utilities.

19 Annual expansion ( ) of access to electricity by the "Luz para Todos" (Light for Everyone) Program Source: MME, personal communication

20 Expansion of access to electricity by the Luz para Todos" (Light for Everyone) Program in the Amazon Region only DIFFICULTIES IN AMAZONAS STATE RAIN FOREST Source: MME, personal communication

21 Cenbio s experience in Remote Villages

22

23 Biomass energy sources for Amazon Agricultural residues (ex cupuassu husks) Sustainable wood residues (certified sawmills) Vegetable oils (ex. palm oil)

24 Use of in natura vegetable oils for electricity production in Amazon PROVEGAM Project Joint project CENBIO/USP COPPE/UFRJ Funded by FINEP Ministry for Science and Technology Soledade village, Para state, Amazon; 700 inhabitants around 120 households. Main activity: agriculture No energy access before the project

25 Use of in natura vegetable oils for electricity production in Amazon Oil palm fruit Engine house Soledade village, Pará state

26 Use of biomass residues Biomass gasification in isolated villages Aquidaban village 20 kw gasifier system (cupuassu husks)

27 Use of biomass residues Biomass gasification in isolated villages GASEIFAMAZ 20 kw gasification system installed in Aquidaban village, Amazonia (supplied by IISc, India, tested and adapted by IPT/CENBIO). Aquidaban village

28 Barriers against the use of renewable energy technologies in off-grid power systems

29 Existing Barriers for Energy Supply from Biomass in Brazilian Amazon I. Current Policies / Existing Barriers CCC (Fuel Consumption Account) subsidies for utilities paid only for diesel oil consumption (Federal Government); CCC subsidies equal to US$ 85/MWh (2004) subsidies must be expanded for renewable energy; Note: due to high generation costs, PV systems appears as solution only where no other sources are available (not even with CCC). Regulatory aspects too strict (24 hours operation/too much low level of interruptions on energy supply; need for more flexible regulatory instruments (studies under development by ANEEL Brazilian regulatory Agency).

30 Existing Barriers for Energy Supply from Biomass in Brazilian Amazon (2) II. Technological Barriers Small-scale steam cycles: minimum size of commercially available systems kw (still high generation costs). Enermad project aims to evaluate such aspects; Small-scale gasification systems: not commercialized in Brazil (technology now being tested in Amazonian remote villages, discussed here); No in natura vegetable oil fired-engines commercialized in Brazil (adaptation being tested in Amazonian remote villages).

31 Conclusions: remote villages in Brazil (and other developing countries) Need for diesel replacement in remote villages use of local energy sources Lack of specific policies to improve renewable energy sources (specially biomass) in rural Amazon villages (legislation and regulatory systems). Need for special programs to stimulate RETs commercialization in remote villages. Main issue: to develop energy access together with economic activities sustainable development.

32 Conclusions Rural electrification through grid connections, in general, is not economically feasible (not affordable); energy supply in these cases must be decentralized; and this is an excellent opportunity for the introduction of renewable energy, as discussed above. institutional models are needed to assure sustainability of off-grid solutions; it must be assured the permanence of incentive funds with a preference to renewable electricity sources; incentives must be created to stimulate concessionaires and permissionaires to diversify their supply alternatives, through the optimization of the use of available resources in the country, such as the PROINFA Program; community participation in electricity management is fundamental, mainly in rural and remote areas, to reduce O&M costs; the social and economic benefits must be maximized to rural/remote communities, through the implementation of local sustainable activities.

33

34 Thank you!!! Profª. Suani Coelho

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