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The Future Expansion of HVDC Power Transmission in Brazil: A Scenario-Based Economic Evaluation

In: Operations Research Proceedings 2015

Author

Listed:
  • Christian Köhnke Mendonça

    (RWTH Aachen University)

  • Christian A. Oberst

    (RWTH Aachen University)

  • Reinhard Madlener

    (RWTH Aachen University)

Abstract

This paper investigates the future need of the Brazilian electric grid for High-Voltage-Direct-Current (HVDC) transmission lines using expansion scenarios. Currently, electricity is produced mainly in large hydropower plants with enormous reservoirs, but the model is approaching a limit because the potential for hydropower near load centers is almost depleted. To preserve a low-carbon electrical energy mix, renewable energy sources in far more distant locations need to be exploited. This paper focuses on the expansion potential of wind, solar and hydropower and its spatial mismatch with the expected future electricity demand. Linear optimization is used to determine the best HVDC connections. The results show clear differences in the costs for transmission lines in different scenarios, confirming that the transmission capacity is a critical factor in the process of expanding the renewable energy generation capacity in Brazil. This study provides insights for policy makers and industry.

Suggested Citation

  • Christian Köhnke Mendonça & Christian A. Oberst & Reinhard Madlener, 2017. "The Future Expansion of HVDC Power Transmission in Brazil: A Scenario-Based Economic Evaluation," Operations Research Proceedings, in: Karl Franz Dörner & Ivana Ljubic & Georg Pflug & Gernot Tragler (ed.), Operations Research Proceedings 2015, pages 659-665, Springer.
    • Handle: RePEc:spr:oprchp:978-3-319-42902-1_89
    DOI: 10.1007/978-3-319-42902-1_89
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    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General

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