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An overview of incentive policies for the expansion of renewable energy generation in electricity power systems and the Brazilian experience

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  • Aquila, Giancarlo
  • Pamplona, Edson de Oliveira
  • Queiroz, Anderson Rodrigo de
  • Rotela Junior, Paulo
  • Fonseca, Marcelo Nunes

Abstract

Energy production from renewable sources is already a reality in many countries, and with that, different strategies for incentivizing investments in renewable energy generation have been proposed and used over the years. In this study, long-term policies that have been applied in several countries, such as feed-in tariffs, shares with commercialization of certificates, auctions, and net metering, are overviewed and discussed. The main advantages and disadvantages of these incentive strategies are emphasized, focusing on applications. Some of these strategies that have already been applied in Brazil are analyzed in greater depth, emphasizing the potentialities and fragilities of these mechanisms observed within the country. Even though it is a country that stands out in relation to other Latin American countries regarding electricity generation from non-hydro renewable sources, Brazil still faces barriers that prevent a utilization compatible with its potential. Moreover, the trend for renewable sources, such as wind and solar power, is to represent an energy capacity reserve to cover hydrological risks and also to contribute to a distributed generation spread through electricity distribution networks.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:rensus:v:70:y:2017:i:c:p:1090-1098
    DOI: 10.1016/j.rser.2016.12.013
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