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Economic and environmental analysis of electricity generation technologies in Brazil

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  • 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.

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  • 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
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    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.

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