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Economic Policy Evaluation for the Deployment of Alternative Energy Sources in Brazil

Author

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  • Chang, Nicolás C. P.

    (RWTH Aachen University)

  • Oberst, Christian A.

    (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN))

  • Madlener, Reinhard

    (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN))

Abstract

In this paper we present an economic evaluation of scenarios for the future Brazilian power sector. We regard different paths for the capacity expansion with alternative energy sources aiming at the economically efficient diversification of the electricity mix. The scenarios are constructed in light of specific features of the Brazilian energy system, such as its enormous storage capacity, the imminent depletion of hydropower potential, and design characteristics of the regulated market. The economic relationships of the electricity generation sector are illustrated by micro‐economic models of industrial organization theory, parameterized with observed data from energy auctions and official market projections.

Suggested Citation

  • Chang, Nicolás C. P. & Oberst, Christian A. & Madlener, Reinhard, 2015. "Economic Policy Evaluation for the Deployment of Alternative Energy Sources in Brazil," FCN Working Papers 13/2015, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
    • Handle: RePEc:ris:fcnwpa:2015_013
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    References listed on IDEAS

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    1. C. Harmon, 2000. "Experience Curves of Photovoltaic Technology," Working Papers ir00014, International Institute for Applied Systems Analysis.
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    Cited by:

    1. 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.

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    More about this item

    Keywords

    Power system planning; energy transition policy; renewable energy;
    All these keywords.

    JEL classification:

    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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