IDEAS home Printed from https://ideas.repec.org/a/eee/rensus/v52y2015icp725-739.html
   My bibliography  Save this article

Economic and environmental analysis of electricity generation technologies in Brazil

Author

Listed:
  • de Jong, Pieter
  • Kiperstok, Asher
  • Torres, Ednildo A.

Abstract

This study compares the economic viability of renewable energy technologies – wind, solar photovoltaic, concentrated solar thermal, biomass and wave power – to traditional generation technologies including hydroelectricity, nuclear power, coal power and gas power sources. The Levelised cost of Electricity (LCOE) for different generation technologies in Brazil are calculated by reviewing existing published literature and examining 13 case study projects. Initial results found that using a low (5%) discount rate, the hydroelectric plants had the lowest LCOE, but were only slightly cheaper than the wind power case studies. However, using a high (10%) discount rate, one of the wind power case studies actually had the lowest LCOE. Solar photovoltaic (PV) was found to be the most expensive technology followed by wave power and concentrated solar thermal power (CSP). It will be shown that grid connected distributed PV and concentrated solar thermal technology are largely undeveloped in Brazil due to the high price associated with importing solar power equipment into Brazil and also due to ineffective federal government policy. The environmental and social externality costs of fossil fuel plants and large scale hydroelectric dams (in the Amazon region) are also discussed. It will be demonstrated that wind power becomes the cheapest generation technology in Brazil, once all externality and transmission line costs are taken into consideration.

Suggested Citation

  • de Jong, Pieter & Kiperstok, Asher & Torres, Ednildo A., 2015. "Economic and environmental analysis of electricity generation technologies in Brazil," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 725-739.
    • Handle: RePEc:eee:rensus:v:52:y:2015:i:c:p:725-739
    DOI: 10.1016/j.rser.2015.06.064
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S136403211500636X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.rser.2015.06.064?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Moura, Pedro S. & de Almeida, Aníbal T., 2010. "Multi-objective optimization of a mixed renewable system with demand-side management," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(5), pages 1461-1468, June.
    2. Delucchi, Mark A. & Jacobson, Mark Z., 2011. "Providing all global energy with wind, water, and solar power, Part II: Reliability, system and transmission costs, and policies," Energy Policy, Elsevier, vol. 39(3), pages 1170-1190, March.
    3. Allan, Grant & Gilmartin, Michelle & McGregor, Peter & Swales, Kim, 2011. "Levelised costs of Wave and Tidal energy in the UK: Cost competitiveness and the importance of "banded" Renewables Obligation Certificates," Energy Policy, Elsevier, vol. 39(1), pages 23-39, January.
    4. Stern,Nicholas, 2007. "The Economics of Climate Change," Cambridge Books, Cambridge University Press, number 9780521700801, October.
    5. Martins, Fernando Ramos & Pereira, Enio Bueno, 2011. "Enhancing information for solar and wind energy technology deployment in Brazil," Energy Policy, Elsevier, vol. 39(7), pages 4378-4390, July.
    6. Alves, Laura Araujo & Uturbey, Wadaed, 2010. "Environmental degradation costs in electricity generation: The case of the Brazilian electrical matrix," Energy Policy, Elsevier, vol. 38(10), pages 6204-6214, October.
    7. Pereira de Lucena, André Frossard & Szklo, Alexandre Salem & Schaeffer, Roberto & Dutra, Ricardo Marques, 2010. "The vulnerability of wind power to climate change in Brazil," Renewable Energy, Elsevier, vol. 35(5), pages 904-912.
    8. Scorah, Hugh & Sopinka, Amy & van Kooten, G. Cornelis, 2012. "The economics of storage, transmission and drought: integrating variable wind power into spatially separated electricity grids," Energy Economics, Elsevier, vol. 34(2), pages 536-541.
    9. Nicholson, Martin & Biegler, Tom & Brook, Barry W., 2011. "How carbon pricing changes the relative competitiveness of low-carbon baseload generating technologies," Energy, Elsevier, vol. 36(1), pages 305-313.
    10. Pereira, Marcio Giannini & Camacho, Cristiane Farias & Freitas, Marcos Aurélio Vasconcelos & Silva, Neilton Fidelis da, 2012. "The renewable energy market in Brazil: Current status and potential," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(6), pages 3786-3802.
    11. de Jong, P. & Sánchez, A.S. & Esquerre, K. & Kalid, R.A. & Torres, E.A., 2013. "Solar and wind energy production in relation to the electricity load curve and hydroelectricity in the northeast region of Brazil," Renewable and Sustainable Energy Reviews, Elsevier, vol. 23(C), pages 526-535.
    12. Liu, Gang & Rasul, M.G. & Amanullah, M.T.O. & Khan, M.M.K., 2012. "Techno-economic simulation and optimization of residential grid-connected PV system for the Queensland climate," Renewable Energy, Elsevier, vol. 45(C), pages 146-155.
    13. Silva, Sergio B. & de Oliveira, Marco A.G. & Severino, Mauro M., 2010. "Economic evaluation and optimization of a photovoltaic-fuel cell-batteries hybrid system for use in the Brazilian Amazon," Energy Policy, Elsevier, vol. 38(11), pages 6713-6723, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. de Jong, Pieter & Kiperstok, Asher & Sánchez, Antonio Santos & Dargaville, Roger & Torres, Ednildo Andrade, 2016. "Integrating large scale wind power into the electricity grid in the Northeast of Brazil," Energy, Elsevier, vol. 100(C), pages 401-415.
    2. Yadira Mori-Clement & Stefan Nabernegg & Birgit Bednar-Friedl, 2018. "Can preferential trade agreements enhance renewable electricity generation in emerging economies? A model-based policy analysis for Brazil and the European Union," Graz Economics Papers 2018-19, University of Graz, Department of Economics.
    3. Corrêa da Silva, Rodrigo & de Marchi Neto, Ismael & Silva Seifert, Stephan, 2016. "Electricity supply security and the future role of renewable energy sources in Brazil," Renewable and Sustainable Energy Reviews, Elsevier, vol. 59(C), pages 328-341.
    4. Thais Faria Costa & Ivan Felipe Silva Santos & Geraldo Lúcio Tiago Filho & Regina Mambeli Barros & Rosana Teixeira Miranda, 2021. "Optimum hydropower potential study on nine Brazilian drainage basins using a numerical algorithm," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(2), pages 1729-1758, February.
    5. de Jong, Pieter & Dargaville, Roger & Silver, Jeremy & Utembe, Steven & Kiperstok, Asher & Torres, Ednildo Andrade, 2017. "Forecasting high proportions of wind energy supplying the Brazilian Northeast electricity grid," Applied Energy, Elsevier, vol. 195(C), pages 538-555.
    6. Herrera, Milton M. & Dyner, Isaac & Cosenz, Federico, 2020. "Benefits from energy policy synchronisation of Brazil’s North-Northeast interconnection," Renewable Energy, Elsevier, vol. 162(C), pages 427-437.
    7. García-Gusano, Diego & Espegren, Kari & Lind, Arne & Kirkengen, Martin, 2016. "The role of the discount rates in energy systems optimisation models," Renewable and Sustainable Energy Reviews, Elsevier, vol. 59(C), pages 56-72.
    8. Cláudio Albuquerque Frate & Christian Brannstrom, 2019. "How Do Stakeholders Perceive Barriers to Large-Scale Wind Power Diffusion? A Q-Method Case Study from Ceará State, Brazil," Energies, MDPI, vol. 12(11), pages 1-14, May.
    9. Herrera, Milton M. & Dyner, Isaac & Cosenz, Federico, 2019. "Assessing the effect of transmission constraints on wind power expansion in northeast Brazil," Utilities Policy, Elsevier, vol. 59(C), pages 1-1.
    10. Diógenes, Jamil Ramsi Farkat & Claro, João & Rodrigues, José Coelho, 2019. "Barriers to onshore wind farm implementation in Brazil," Energy Policy, Elsevier, vol. 128(C), pages 253-266.
    11. Santa Catarina, Artur, 2022. "Wind power generation in Brazil: An overview about investment and scale analysis in 758 projects using the Levelized Cost of Energy," Energy Policy, Elsevier, vol. 164(C).
    12. Frate, Claudio Albuquerque & Brannstrom, Christian, 2017. "Stakeholder subjectivities regarding barriers and drivers to the introduction of utility-scale solar photovoltaic power in Brazil," Energy Policy, Elsevier, vol. 111(C), pages 346-352.
    13. Antonio Barragán-Escandón & Jonathan Miguel Olmedo Ruiz & Jonnathan David Curillo Tigre & Esteban F. Zalamea-León, 2020. "Assessment of Power Generation Using Biogas from Landfills in an Equatorial Tropical Context," Sustainability, MDPI, vol. 12(7), pages 1-18, March.
    14. Ferraz de Andrade Santos, José Alexandre & de Jong, Pieter & Alves da Costa, Caiuby & Torres, Ednildo Andrade, 2020. "Combining wind and solar energy sources: Potential for hybrid power generation in Brazil," Utilities Policy, Elsevier, vol. 67(C).
    15. Kalair, A. & Abas, N. & Khan, N., 2016. "Comparative study of HVAC and HVDC transmission systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 59(C), pages 1653-1675.
    16. Paes, Carlos Eduardo & Gandelman, Dan Abensur & Firmo, Heloisa Teixeira & Bahiense, Laura, 2022. "The power generation expansion planning in Brazil: Considering the impact of greenhouse gas emissions in an Investment Decision Model," Renewable Energy, Elsevier, vol. 184(C), pages 225-238.
    17. de Jong, Pieter & Barreto, Tarssio B. & Tanajura, Clemente A.S. & Oliveira-Esquerre, Karla P. & Kiperstok, Asher & Andrade Torres, Ednildo, 2021. "The Impact of Regional Climate Change on Hydroelectric Resources in South America," Renewable Energy, Elsevier, vol. 173(C), pages 76-91.
    18. Chadee, Xsitaaz T. & Clarke, Ricardo M., 2018. "Wind resources and the levelized cost of wind generated electricity in the Caribbean islands of Trinidad and Tobago," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P2), pages 2526-2540.
    19. Schiochet Pinto, Luane & Pinheiro Neto, Daywes & de Leles Ferreira Filho, Anésio & Domingues, Elder Geraldo, 2020. "An alternative methodology for analyzing the risk and sensitivity of the economic viability for generating electrical energy with biogas from the anaerobic bio-digestion of vinasse," Renewable Energy, Elsevier, vol. 155(C), pages 1401-1410.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. de Jong, Pieter & Kiperstok, Asher & Sánchez, Antonio Santos & Dargaville, Roger & Torres, Ednildo Andrade, 2016. "Integrating large scale wind power into the electricity grid in the Northeast of Brazil," Energy, Elsevier, vol. 100(C), pages 401-415.
    2. Corrêa da Silva, Rodrigo & de Marchi Neto, Ismael & Silva Seifert, Stephan, 2016. "Electricity supply security and the future role of renewable energy sources in Brazil," Renewable and Sustainable Energy Reviews, Elsevier, vol. 59(C), pages 328-341.
    3. Farkat Diógenes, Jamil Ramsi & Coelho Rodrigues, José & Farkat Diógenes, Maria Caroline & Claro, João, 2020. "Overcoming barriers to onshore wind farm implementation in Brazil," Energy Policy, Elsevier, vol. 138(C).
    4. Diógenes, Jamil Ramsi Farkat & Claro, João & Rodrigues, José Coelho, 2019. "Barriers to onshore wind farm implementation in Brazil," Energy Policy, Elsevier, vol. 128(C), pages 253-266.
    5. de Jong, Pieter & Dargaville, Roger & Silver, Jeremy & Utembe, Steven & Kiperstok, Asher & Torres, Ednildo Andrade, 2017. "Forecasting high proportions of wind energy supplying the Brazilian Northeast electricity grid," Applied Energy, Elsevier, vol. 195(C), pages 538-555.
    6. Pueyo, Ana, 2013. "Enabling frameworks for low-carbon technology transfer to small emerging economies: Analysis of ten case studies in Chile," Energy Policy, Elsevier, vol. 53(C), pages 370-380.
    7. Herrera, Milton M. & Dyner, Isaac & Cosenz, Federico, 2019. "Assessing the effect of transmission constraints on wind power expansion in northeast Brazil," Utilities Policy, Elsevier, vol. 59(C), pages 1-1.
    8. Juárez, Alberto Aquino & Araújo, Alex Maurício & Rohatgi, Janardan Singh & de Oliveira Filho, Oyama Douglas Queiroz, 2014. "Development of the wind power in Brazil: Political, social and technical issues," Renewable and Sustainable Energy Reviews, Elsevier, vol. 39(C), pages 828-834.
    9. Carvalho, Diego B. & Pinto, Bárbara L. & Guardia, Eduardo C. & Marangon Lima, José W., 2020. "Economic impact of anticipations or delays in the completion of power generation projects in the Brazilian energy market," Renewable Energy, Elsevier, vol. 147(P1), pages 1312-1320.
    10. Ferraz de Andrade Santos, José Alexandre & de Jong, Pieter & Alves da Costa, Caiuby & Torres, Ednildo Andrade, 2020. "Combining wind and solar energy sources: Potential for hybrid power generation in Brazil," Utilities Policy, Elsevier, vol. 67(C).
    11. Aquila, Giancarlo & Pamplona, Edson de Oliveira & Queiroz, Anderson Rodrigo de & Rotela Junior, Paulo & Fonseca, Marcelo Nunes, 2017. "An overview of incentive policies for the expansion of renewable energy generation in electricity power systems and the Brazilian experience," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 1090-1098.
    12. Lai, Chun Sing & McCulloch, Malcolm D., 2017. "Levelized cost of electricity for solar photovoltaic and electrical energy storage," Applied Energy, Elsevier, vol. 190(C), pages 191-203.
    13. Fernando G. Bernardes & Douglas A. G. Vieira & Vasile Palade & Rodney R. Saldanha, 2018. "Winds of Change: How Up-To-Date Forecasting Methods Could Help Change Brazilian Wind Energy Policy and Save Billions of US$," Energies, MDPI, vol. 11(11), pages 1-22, October.
    14. Steve Dahlke, 2019. "Short Run Effects of Carbon Policy on U.S. Electricity Markets," Energies, MDPI, vol. 12(11), pages 1-21, June.
    15. Aquila, Giancarlo & Rotela Junior, Paulo & de Oliveira Pamplona, Edson & de Queiroz, Anderson Rodrigo, 2017. "Wind power feasibility analysis under uncertainty in the Brazilian electricity market," Energy Economics, Elsevier, vol. 65(C), pages 127-136.
    16. Azadian, Farshad & Radzi, M.A.M., 2013. "A general approach toward building integrated photovoltaic systems and its implementation barriers: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 22(C), pages 527-538.
    17. Nogueira, Carlos Eduardo Camargo & Vidotto, Magno Luiz & Niedzialkoski, Rosana Krauss & de Souza, Samuel Nelson Melegari & Chaves, Luiz Inácio & Edwiges, Thiago & Santos, Darlisson Bentes dos & Wernck, 2014. "Sizing and simulation of a photovoltaic-wind energy system using batteries, applied for a small rural property located in the south of Brazil," Renewable and Sustainable Energy Reviews, Elsevier, vol. 29(C), pages 151-157.
    18. Dahlke, Steven, 2019. "Short run effects of carbon policy on U.S. electricity markets," SocArXiv b79yu, Center for Open Science.
    19. Motavasseli, Ali, 2016. "Essays in environmental policy and household economics," Other publications TiSEM b32e287e-169b-4e89-9878-1, Tilburg University, School of Economics and Management.
    20. Songkai Wang & Rong Jia & Chang Luo & Yuan An & Pengcheng Guo, 2022. "Spatiotemporal Complementary Characteristics of Large-Scale Wind Power, Photovoltaic Power, and Hydropower," Sustainability, MDPI, vol. 14(15), pages 1-17, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:rensus:v:52:y:2015:i:c:p:725-739. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.