Bridging the Gap Between Energy and Climate Policies in Brazil: Policy Options to Reduce Energy-Related GHG Emissions

Brazil is facing a series of important policy decisions that will determine its energy future over the next several decades, with important implications for the country's economic competitiveness, the well-being of its citizens, and the global climate. The decisions concern the direction of approximately 0.5 trillion U.S. dollars of anticipated investment in energy infrastructure over the next decade -- which can either lock in carbon-intensive infrastructure, or advance Brazil's position as a leader in the low-carbon economy. This report examines Brazil's key energy-related GHG emitting sectors through a climate lens in order to offer recommendations for a more integrated approach that can more effectively reconcile energy and climate needs. It begins with an overview of Brazil's past energy and GHG emissions profiles, current pledges and future trends, and a discussion of the implications for a possible allocation of the remaining global carbon budget. Next, it reviews available scenarios for Brazil's energy-related GHG emissions in order to identify key drivers and results and compare them to a given allocation of the global carbon budget. It then focuses on the top emitting subsectors -- transport, industry, and power generation -- to identify key abatement opportunities. The report concludes with recommendations regarding a portfolio of policies and measures that could achieve both climate and energy objectives

Towards a smart grid power system in Brazil: challenges and opportunities

The prospects for a smart power system have been widely discussed in the global electricity sector. Decarbonization, Digitalization and Decentralization are considered the main key drivers for this power system transition and Brazil is no exception to this universal trend. A search of the literature revealed few studies which attempt to address the main challenges and opportunities towards a smart grid power system in Brazil. This paper provides an up-to-date assessment of the present and potential capabilities of existing and future technologies, regulations and policies and attempts to identify how these elements are interrelated. Our findings add to a growing body of evidence suggesting that policies for Distributed Generation (DG), Demand-Side Management (DSM) and new tariff schemes are on a path of accelerated deployment in the country. The deployment of storage technologies, however, is at a slow pace of growth. We highlight the need to further develop new business models to address the various decentralized energy technologies and services that are emerging in the sector. The current netmetering system is considered a key issue to be addressed as this regulatory structure may shift the costs from DG to non-DG users.- This work is supported by the National Council for Scientific and Technological Development (CNPq), Brazil. This work has been supported by national funds through FCT - Fundacao para a Ciencia e Tecnologia within the Project Scope: UID/CEC/00319/2019

A means to an industrialisation end? Demand side management in Nigeria

Electricity is essential for economic development and industrialisation processes. Balancing demand and supply is a recurrent problem in the Nigerian electricity market. The aim of this work is to assess the technical and economic potential of Demand Side Management (DSM) in Nigeria given different future levels of industrialisation. The paper places industrialisation at the centrefold of the appraisal of DSM potential in Nigeria. It does so by designing industrialisation scenarios and consequently deriving different DSM penetration levels using a cost-optimisation model. Findings show that under the high industrialisation scenario by the year 2050 DSM could bring about 7 billion USD in cumulative savings thanks to deferred investment in new generation and full deployment of standby assets along with interruptible programmes for larger industrial users. The paper concludes by providing policy recommendations regarding financial mechanisms to increase DSM deployment in Nigeria. The focus on DSM serves to shift the policy debate on electricity in Nigeria from a static state versus market narrative on supply to an engagement with the agency and influence on industrial end-users

Policies for capacity development

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Investing in Sustainable Energy Futures: Multilateral Development Banks' Investments in Energy Policy

Analyzes MDB loans for electricity projects and lays out policy reforms, regulations, and institutional capacities needed to enable public and private investment in sustainable energy and ways for MDBs to address them consistently and comprehensively

Pace Energy & Climate Center 2016 Annual Report

The Center staff and many allies are deeply involved in the business of electric utility transformation. We live and work in a remarkable time. Decades of steady, thoughtful leadership on clean energy issues is now bearing fruit. Clean energy is not just the right thing to do, it is increasingly recognized as the right choice economically, technically, and for all members of society. Our work, especially in 2016, has been about making sure that we seize the moment and secure the benefits of clean energy use for all communities in New York, the Northeast U.S., across the country, and throughout the world. Never has it been more important that we succeed in our work. The challenges of climate change, the changing path of policy, and the moral imperative of building a clean energy foundation for future generations drive us every day. While we don’t work actively in Washington, D.C., changes there threaten our work. The Center focuses on waging a strong offense at the state and community level, and on effectively communicating the benefits of clean energy development and policy. In 2016, we answered the call for clear-eyed policy leadership in the many New York Public Service Commission’s (“NYPSC”) Reforming the Energy Vision (“REV”) initiative proceedings under way. Our work multiplied as the Commission transitioned from vision to implementation and execution, and so did our impact. See the Appendix for the active NY PSC proceedings in which the Center is engaged! The Center continued its regional leadership as a champion of super-efficient combined heat and power, strong solar energy market policy, and interstate cooperation to reduce greenhouse gas emissions. We expand the reach of our ideas and support through formal regulatory interventions, thought leadership, and good old-fashioned research and writing. The Pace Energy and Climate Center continues to operate as a small, agile, interdisciplinary team of talented and committed individuals, and continues to benefit from the support of the best law student interns anywhere. Our network of collaborators at other organizations has grown over the year, as has our reputation in the media

UK energy in a global context: synthesis report

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Innovative Business Models for Distributed PV in Brazil

Most of the increase in world electricity demand until 2030 is expected to come from developing countries (IRENA, 2016) and transition to carbon free energy production technologies offers the opportunity to reduce the negative effects of this increase. With majority of the low and middle income countries located in the areas of favourable solar radiation, PV technology is likely to become a key source of energy in these countries. Brazil is one of the middle income countries with very high solar potential and has much to benefit from the rapid deployment of PV. However, the development is impeded by various economic, institutional and social barriers.Innovative business models can be helpful in overcoming these barriers and accelerate the market adoption of PV. By looking at the case of Brazil, this study investigates how innovative business models for distributed solar PV can help to overcome the deployment barriers. Business models of Third Party Ownership, Community Solar, Crowd-funding and Peer-to-Peer Energy Trading are analysed through the business model canvas framework of Osterwalder and Pigneur (2010). The results show that all four models can have unique contributions to help increase the deployment of distributed PV in Brazil by effectively addressing the fundamental barrier of financing, by offering complementary value propositions, by increasing the potential user base and by increasing awareness among general public, through peer effect or community bonds. With its findings the study contributes to the limited research on PV business models in urban context in middle income countries. Policy recommendations include regulatory adjustments to prepare for a future energy system with distributed generation and disruptive business models with advanced digital technology like crowd-funding and P2P, opening ways for the electricity distribution companies to align their interest with solar businesses and cooperate, and providing low cost credit lines aimed at smaller solar companies

Smart grid: evaluation and trend in Brazil

The Smart Grid is considered the most promising conglomerate of technology to be applied for the improvement and optimization of all power production in electrical engineer. Smart Grid's concept is being more and more recognized for its importance for representing a way to meliorate the energetic efficiency of the electric system, reducing consumption, allowing intensive use of energy generation renewable sources. Therefore, the goal of this article is to explore and present Smart Grid's concepts and its global evolution, so as perform an assessment on Smart Grid's tendencies in Brazil. In order to do this, we shown the concepts of Smart Grid, its benefits and impacts in the electric system's value chain, the barriers to its diffusion in Brazil and the paths of investments' incentives for deployment of the new technology. Accordingly, we reach the conclusion that the researches point to a long and challenging trajectory for the development and implantation of Smart Grid's technology in Brazil, which is still in a embryonic phase of pilot projects for the knowledge and technology development implantation

Discussion on drivers and proposition of approaches to support the transition of traditional electricity consumers to prosumers

In recent years, traditional power systems have undergone a significant transition, mainly related to the massive penetration of Renewable Energy Sources (RES). More specifically, the transformation of residential consumers into prosumers has been challenging to the traditional operation of electricity markets. This transition brings new challenges and opportunities to the power system, leading to new Business Model (BM). One widely discussed change is related to a consumer-centric or prosumer-driven approach, promoting increased participation of small consumers in power systems. The present thesis aims at discussing the recent BMs as enablers of the increasing prosumers’ role in the energy market and power system worldwide, deepening the discussion with a holistic view of the Brazilian context. To do so, it defines the main features of prosumers and their general related regulation as well as possible market designs within power systems. Moreover, the work intends to contribute to the knowledge, identification and understanding of the main regulatory barriers and enablers for the development of those BMs in the Brazilian energy market. In addition, it discusses enabling technologies to properly create the conditions that sustain new prosumer-driven markets. Then, it presents a comprehensive review of existing and innovative BMs and a discussion on their future roles in modern power systems and, in the Brazilian regulatory framework seeking to guide the decisions for the country to develop its political and regulatory environment in the future. Moreover, a set of recommendations for promoting these BMs in the power system worldwide is provided along with policy recommendations to promote prosumers aggregation in the Brazilian energy sector. An important conclusion is that, even though economically possible, not all innovative BMs can spread around the world due to regulatory issues. Seeking to further explore one of the prosumer-driven approaches presented and the challenges imposed by this innovative BM, a study of energy and reserve markets based on the Peer-to-Peer (P2P) structure is carried out. This structure is very promising for the prosumers’ promotion but presents some challenges for the network operation. A critical challenge is to ensure that network constraints are not violated due to energy trades between peers and neither due to the use of reserve capacity. Therefore, two methodologies are proposed. First, is proposed a three-step approach (P2PTDF), using Topological Distribution Factors (TDF) to penalize peers responsible for violations that may occur in the network constraints, ensuring a feasible solution. Second, it is proposed a new integrated prosumers-DSO approach applied in P2P energy and reserve tradings that also ensures the feasibility of both energy and reserve transactions under network constraints. The proposed approach includes the estimation of reserve requirements based on the RES uncertain behavior from historical generation data, which allows identifying RES patterns. The proposed models are assessed through a case study that uses a 14-bus system, under the technical and economic criteria. The results show that the approaches can ensure a feasible network operation.Nos últimos anos, os sistemas tradicionais de energia passaram por uma transição significativa, principalmente relacionada à penetração massiva de fontes de energia renováveis (do inglês, Renewable energy sources-RES). Mais especificamente, a transformação de consumidores residenciais em prosumidores tem desafiado a atual operação do mercado de energia elétrica. Essa transição traz novos desafios e oportunidades para o sistema elétrico, levando a novos modelos de negócios (do inglês, Business Models-BM). Uma mudança amplamente discutida está relacionada a uma abordagem centrada no consumidor ou direcionada ao prossumidor, promovendo maior participação de pequenos consumidores nos sistemas de energia. A presente tese tem como objetivo discutir os recentes BMs como facilitadores do crescente papel dos prosumidores no mercado de energia e no sistema elétrico mundial, aprofundando a discussão com uma visão holística do contexto brasileiro. Para tanto, define as principais características dos prosumidores e sua regulamentação geral relacionada, bem como possíveis designs de mercado dentro dos sistemas de energia. Além disso, o trabalho pretende contribuir para o conhecimento, identificação e compreensão das principais barreiras regulatórias e facilitadoras para o desenvolvimento desses BMs no mercado brasileiro de energia. Assim como, discutir as tecnologias importantes para criar adequadamente as condições que sustentam novos mercados orientados ao consumidor final. Em seguida, apresenta uma revisão abrangente dos BMs existentes e inovadores e uma discussão sobre seus papéis futuros nos sistemas de energia modernos e, no quadro regulatório brasileiro, buscando orientar as decisões para que o país desenvolva seu ambiente político e regulatório no futuro. Além disso, um conjunto de recomendações para promover esses BMs no sistema de energia em todo o mundo é fornecido juntamente com recomendações de políticas para promover a agregação de prosumidores no setor de energia brasileiro. Uma conclusão importante é que, mesmo sendo economicamente possível, nem todos os BMs inovadores podem se espalhar pelo mundo devido a obstáculos regulatórias. Buscando explorar ainda mais uma das abordagens orientadas ao prosumidor apresentadas e os desafios impostos por este BM inovador, é realizado um estudo dos mercados de energia e de reserva com base na estrutura ponto a ponto (do inglês, peer-to-peer-P2P). Esta estrutura é muito promissora para a promoção dos prosumidores mas apresenta alguns desafios para o funcionamento da rede. Um desafio crítico é garantir que as restrições da rede não sejam violadas devido a negociações de energia entre pares e nem devido ao uso da capacidade de reserva. Portanto, duas metodologias são propostas. Primeiramente, é proposta uma abordagem em três passos (P2PTDF), utilizando Fatores de Distribuição Topológica (do inglês, Topological Distribution Factors-TDF ) para penalizar os peers responsáveis por violações que possam ocorrer nas restrições da rede, garantindo uma solução viável. Em segundo lugar, é proposta uma nova abordagem integrada de prosumidores-DSO aplicada em transações P2P de energia e reserva que também garante a viabilidade de transações de energia e reserva sob restrições de rede. A abordagem proposta inclui a estimativa dos requisitos de reserva com base no comportamento incerto da RES a partir de dados históricos de geração, o que permite identificar padrões de RES. Os modelos propostos são avaliados através de um estudo de caso que utiliza um sistema de 14 barras, sob os critérios técnico e econômico. Os resultados mostram que as abordagens podem garantir uma operação de rede viável abrangendo energia e mercados de reserva