The second workshop “What are the real costs and benefits of electric generation sources in Brazil” was held

Workshop – 09.04.2018

On April 3rd, the 2nd workshop “What are the real costs and benefits of the electric generation sources in Brazil” of Instituto Escolhas in partnership with the Energy Research Company (EPE) and with support of the Climate and Society Institute (iCS). The workshop, which had the participation of PSR’s president Mario Veiga and technical director Bernardo Bezerra, was presented to more than 50 people from various institutions (including representatives of EPE, Aneel, ONS, CCEE, Iema, Abeeólica, Abraget, Absolar, Brookfield, Engie and Greenpeace). The main objective of the workshop was to present the study developed by PSR to quantify the costs and benefits of the attributes of the main sources of generation of the Brazilian electricity system (mainly renewable), taking into account (i) the services provided by these sources (beyond generation), (ii) the amounts required to recover the investment, (iii) the internalisation of costs related to environmental impacts (emissions), (iv) infrastructure costs caused or avoided and (v) subsidies, for example. Bezerra says that since 2004 the process of contracting energy in Brazil is simplified, since it is based only on the price of energy production of the plants, which was important in the beginning to attract new investors in the sector; but nowadays, he says, there is a great need to improve this contracting mechanism in order to quantify the costs, attributes and services provided by the generation sources, especially of renewable sources. During the workshop, it was emphasized that this attribution of value to the different sources allows an adequate remuneration to the generators, a lower tariff for the final consumer, suitability of supply, flexibility to respond unexpected events and also increase the participation of renewables in the Brazilian energy matrix .