THE BRAZILIAN ELECTRICITY SYSTEM: AN EVALUATION OF THE THERMOELECTRIC PLANTS UNDER THE ELETROBRAS PRIVATIZATION LAW

• Published in: Revista Tempo do mundo no. 32; pp. 295 - 318
• Main Authors: Vinícius Oliveira da Silva, Fabio Galdino dos Santos, Felipe Barcellos e Silva, Raissa Gabriela Gomes Silva, Isis Rosa Nóbile Diniz, Cássio Cardoso Carvalho, Anton Altino Schwyter, André Luís Ferreira, Ricardo Lacerda Baitelo
• Format: Journal Article
• Language: English
• Published: Instituto de Pesquisa Econômica Aplicada 01-08-2023
• Subjects: brazil; brazilian electricity sector; eletrobras; energy planning; energy transition; natural gas
• ISSN: 2176-7025; 2675-150X
• DOI: 10.38116/rtm32art9

Discussions on the energy transition (ET) in the Brazilian electricity sector (sistema elétrico brasileiro – SEB) have often considered the insertion of natural gas (NG) thermoelectric plants (TPPs) as a solution to energy security. The SEB has a high penetration of renewable sources (84%). Its decarbonization is a mechanism that can contribute to Brazil’s greenhouse gas (GHG) emission reduction targets and help mitigate the impacts of climate change by increasing the share of renewable sources. With this in mind, the aim of this paper is to analyse the requirement to contract 8,000 MW of new NG-fired thermal power plants – thermal-jabutis – based on Eletrobras’ privatization law No. 14,182/2021 and its impact on the SEB. Methodologically, two guiding questions are used: i) does the SEB need new NG TPPs?;and ii) what are the impacts of implementing the new NG TPPs provided for in the Eletrobras privatization law?The results show that the compulsory contracting of NG TPPs in Brazil will result in: i) additional infrastructure costs for transporting NG to the TPPs; ii) a 40% increase in the SEB’s annual GHG emissions; and iii) an increase in the demand for water resources, due to the consumption of water to operate the TPPs. On the other hand, in order to guarantee the increase in energy demand and the energy security of the SEB in the long term, the expansion of transmission networks and solar and wind generation are required as the most economical means of reducing GHG emissions from the electricity sector. It is necessary to guarantee the protection of biodiversity, the rights of communities affected by the implementation of these projects and the coordinated operation of these new plants with the Brazilian hydroelectric park, in order to guarantee the storage of energy in the form of water for periods of water scarcity and load control. Finally, we conclude that: i) it is essential to consider not only GHG emissions, but also environmental and social impacts when evaluating the expansion of power generation in Brazil; ii) the implementation of NG TPPs is a contradiction to the Brazilian TE, as it increases environmental impacts, the price of the energy tariff, delays the achievement of the decarbonization goals of the SEB and the 2030 Agenda; and iii) it goes against the scientific evidence, widely disseminated nationally and internationally, which recommends expanding the Brazilian supply of electricity from solar and wind sources. Therefore, the SEB does not need inflexible fossil TPPs.