1. A SUSTAINABLE ENERGY POLICY REQUIRED TO BRAZIL
Fernando Alcoforado
Abstract: This article aims to analyze the energy sector in Brazil and recent government policies for
energy development from the perspective of sustainable development. The results of this study point to
the need to adopt a new sustainable energy policy for Brazil heavily based on renewable energy in the
electrical, petroleum and natural gas sectors.
Resumen: El presente artículo tiene como objetivo analizar el sector de la energía en Brasil y las
recientes políticas gubernamentales para el desarrollo de energía desde la perspectiva del desarrollo
sostenible. Los resultados de este estudio apuntan a la necesidad de la adopción de una nueva política
energética sostenible para Brasil en gran medida basado en las energías renovables en los sectores
eléctrico, petróleo y gas natural
Keywords: The electric sector in Brazil. The petroleum and natural gas sector in Brazil. Brazilian energy
matrix. Sustainable policies required for the energy sector in Brazil.
Palabras clave: El sector eléctrico en Brasil. El sector petróleo y gas natural en Brasil. Matriz energética
brasileña. Políticas sostenibles requeridas para el sector energético en Brasil.
1. INTRODUCTION
This study aimed to analyze the energy sector in Brazil and recent government policies
for energy from the perspective of sustainable development. In this sense, the sectors
surveyed were electric, petroleum and natural gas in Brazil to assess their performance
in the recent period and its scenarios for 2030 and 2050. The research included the
analysis of various publications cited in the bibliography, highlighting among them the
National Energy Plan (PNE 2030) prepared by the Ministry of Mines and Energy and 3
studies undertaken by Greenpeace [R]evolução energética- Perspectivas para uma
energia global sustentável ([R]evolution energy-outlook sustainable global energy),

Alcoforado, Fernando, engineer and doctor of Territorial Planning and Regional Development from the
University of Barcelona, a university professor and consultant in strategic planning, business planning,
regional planning and planning of energy systems, is the author of Globalização (Editora Nobel, São
Paulo, 1997), De Collor a FHC- O Brasil e a Nova (Des)ordem Mundial (Editora Nobel, São Paulo,
1998), Um Projeto para o Brasil (Editora Nobel, São Paulo, 2000), Os condicionantes do
desenvolvimento do Estado da Bahia (Tese de doutorado. Universidade de Barcelona,
http://www.tesisenred.net/handle/10803/1944, 2003), Globalização e Desenvolvimento (Editora Nobel,
São Paulo, 2006), Bahia- Desenvolvimento do Século XVI ao Século XX e Objetivos Estratégicos na Era
Contemporânea (EGBA, Salvador, 2008), The Necessary Conditions of the Economic and Social
Development-The Case of the State of Bahia (VDM Verlag Dr. Muller Aktiengesellschaft & Co. KG,
Saarbrücken, Germany, 2010), Aquecimento Global e Catástrofe Planetária (P&A Gráfica e Editora,
Salvador, 2010), Amazônia Sustentável- Para o progresso do Brasil e combate ao aquecimento global
(Viena- Editora e Gráfica, Santa Cruz do Rio Pardo, São Paulo, 2011) and Os Fatores Condicionantes do
Desenvolvimento Econômico e Social (Editora CRV, Curitiba, 2012), among others.
1

2. [R]evolução energética- A caminho do desenvolvimento limpo ([R]evolution energy-
The path of clean development) and Investimento em energias renováveis pode gerar
economia de US$ 180 bilhões por ano (Investment in renewable energy could generate
savings of $ 180 billion per year). The analytical framework used was the model of
sustainable development that applied to the energy industry would aim to meet energy
demand without compromising the nature and without depleting its natural resources, to
bequeath them to future generations.
The energy sector in Brazil is facing at the moment with two giant problems. The first
relates to the need to reduce consumption of petroleum products to reduce CO2
emissions and contribute to the fight against global warming to avoid catastrophic
consequences. The second relates to the supply of electricity in the country which will
involve the construction of several large hydroelectric dams in the Amazon region with
its environmental impacts on the Amazon forest and the indigenous communities living
there, in the deployment of four nuclear power plants with all the problems associated
with security and final disposal of nuclear waste and the deployment of conventional
power plants using coal, petroleum products and natural gas which will result more
CO2 into the atmosphere with harmful consequences from the point of view of global
climate change. Solving these problems requires finding substitutes for coal, petroleum
products, natural gas, hydroelectric large Amazon region, nuclear and conventional
power plants.
To avoid the aforementioned problems and promote sustainable development of the
energy sector in Brazil, the results of this study point to the need to adopt a new energy
policy strongly based on renewable energy. This proposed new energy policy is
supported in studies of Greenpeace [R]evolução energética- Perspectivas para uma
energia global sustentável ([R]evolution energy-outlook sustainable global energy) for
the electric sector in Brazil and the author's own studies encompassing all sectors of
energy (electric, petroleum and gas natural) of Brazil.
2. THE ENERGY SECTOR IN BRAZIL
Brazil is the 10th largest energy consumer in the world and the largest in South
America. Government agencies responsible for energy issues in Brazil are: 1) National
Energy Policy Council (CNPE) who has the authority to propose to the President of the
Republic national policies and measures for the sector, 2) Ministry of Mines and Energy
2

3. (MME) that creates standards, monitors and evaluates federal programs and policies to
deploy the energy sector; 3) Departments of Energy Planning and Development
(Electricity, Petroleum, Natural Gas and Renewable Fuels), 4) Energy Research
Company (EPE) which aims to provide services in the area of studies and research to
support the planning of the energy sector.
The Brazilian government has the regulatory agencies ANEEL (Brazilian Electricity
Regulatory Agency) and ANP (National Agency of Petroleum, Natural Gas and
Biofuels), besides having the National Nuclear Energy Commission (CNEN) and the
National Department of Mineral Production (DNPM). The energy sector also has
Petrobras, mixed economy company, which is a publicly traded corporation, with
operations in 30 countries, leader of the petroleum sector in Brazil, occupying the third
position in the world market energy companies, and Eletrobras that is a mixed economy
company publicly traded, which operates in the electric markets and supports strategic
programs of the government, as the Incentive Program for Alternative Sources of
Energy (Proinfa), the Program National Universal Access and Use of Electric Energy
(Light for Everyone) and the National Program for Energy Conservation (Procel).
2.1-The electric sector in Brazil
For many years, especially prior to the 1990s, the state had in Brazil what might be
called a monopoly in the electric sector. That is, the State exercised exclusively, the
production, transmission and distribution of electricity. However, from the beginning of
the 1990s, there was a substantial change to the policy of privatization of the electric
sector. This privatization process had its beginnings during the government of Fernando
Collor, but was extended by subsequent governments, Itamar Franco, Fernando
Henrique Cardoso and Luiz Inácio Lula da Silva. This process occurred through the
guidelines established by the National Privatization Program (PND) that it intended to
transfer to private sector management of the activities that the public sector did not
operate effectively.
After almost 20 years since the beginning of the privatization of electricity distribution,
the balance of what was promised and what is actually happening in the country, allows
identifying the existence of many faults in electric power supply in several regions of
Brazil. Since 1995, the distribution of electricity is operated by private enterprise. The
distributors manage the concession areas with the obligation of maintenance, expansion
3

4. and provision of adequate infrastructure, and its revenue from charging fees to their
customers. The promises that the private sector would improve the quality of services
and the adoption of affordable rates for all citizens were misleading promises.
The practice has not shown that the management of the electric sector by private
companies is always superior to public companies. Since 2006 there has been, in most
companies, a declining trend of the indicators of quality of services due to its
deterioration, reflecting negatively to the consumer. Recent blackouts Brazilian
electrical system can be attributed to four factors: 1) lack of adequate coordination of
the protection system that has not been able to isolate the problem in the affected area
by preventing the spread of blackouts in the three regions of Brasil, 2) lack of double
protection system in critical areas that can be triggered in the event of faults in the
electrical system, 3) lack of adequate maintenance service to minimize the occurrence
of faults in the electrical system, and 4) lack of systems for emergency power supply in
critical areas that can be triggered when the blackout happens in Brazil's interconnected
power system.
The electricity supply by source in 2009 is shown in Figure 1. The analysis of this
figure reveals that 82% of the electricity supply was hydroelectric and biomass, while
the non-renewable energy sources accounted for 18% of the total.
Figure 1- Domestic supply of electricity by source in 2009 (%)
Wind Import
Biomass
0% 8%
5%
Natural gas
3%
Petroleum
products
3% Nuclear
3% Hydraulics
77%
Coal and
derivatives
1%
Source: PNE 2030
The National Energy Plan 2030 (PNE 2030), the first study of integrated planning of
energy resources held within the Brazilian government, prepared by the Ministry of
4

5. Mines and Energy of Brazil (MME) provides for the expansion of the electricity sector
by 2030 with the use of energy sources described below: 1) Renewables-191.35 GW
(92 GW existed in 2010), 2) Conventional thermoelectric-21.5 GW (16 GW existed in
2010), and 3) Nuclear- 8 GW (2 GW existed in 2010). 1 GW = 1 Gigawatt = 1,000,000
KW of power. Renewable energy is derived from those natural cycles of conversion of
solar radiation, the primary source of almost all energy available on Earth and therefore
are practically inexhaustible sources such as hydropower, solar, wind and biomass,
unlike sources non-renewable energy such as petroleum, coal, natural gas and nuclear.
Figure 2 shows that in 2030, the PNE 2030 considers the use of new energy sources
(wind, sugarcane biomass cogeneration and waste), besides the increase of coal and
nuclear sources in relation to the situation in 2009. The share of hydropower remains
the same for 2009.
Figure 2- Domestic supply of electricity by source in 2030 (%)
Wind Waste Other
1% 1% 1%
Cogeneration
sugarcane
biomass
3%
coal
3% Hydraulics
Nuclear 77%
5%
Natural gas
9%
Source: PNE 2030
For these reasons, large hydropower will continue to be the main source of energy in the
electric sector expansion accounting for 77% of total capacity to be installed by 2030.
The priority given to large hydro in Brazil follows the tradition adopted from the
implementation of the interconnected electric system in the 1960s to favor the use of
large hydroelectric power plants for generation of lower cost due to economy of scale
obtained in addition to serve the interests of contractors of major projects in Brasil, big
beneficiary of such works.
5

6. With respect to hydropower, its untapped potential in Brazil corresponds to 185.5 GW
of which 101.5 GW are located in northern Brazil, particularly in the Amazon region. It
was planned for the next twenty years, the installation in the Amazon region 60 large
hydroelectric plants with a generation potential of between 60 and 70 GW being the
main plants Belo Monte, Jirau, Santo Antonio, Estreito among others which represent a
great threat to many Amazonian indigenous peoples and the preservation of the Amazon
rainforest that plays a key role in combating global warming by acting as a carbon sink.
Although Brazil have a hydropower potential of 83 GW out of the North Region that
could be used without affecting the Amazon rainforest, the Brazilian government is
planning and implementing large hydroelectric projects in the Amazon region in
defiance of restrictions in terms of social and environmental. Another flagrant
irrationality in planning the electricity sector in Brazil lies in the fact that the Country
has a potential of 143.5 GW in wind power and plans to use only 3.3 GW in 2030
despite having a generation cost competitive with the hydroelectric plants. It should be
noted that wind farms can operate in complementation with the hydroelectric enabling
accumulate water in their reservoirs.
Great irrationality lies also in the fact that the PNE 2030 does not provide for the use of
large solar energy potential that exists in Brazil with the use of photovoltaic panels,
which should be widely disseminated in isolated communities in rural areas where the
cost of electricity supply Networking is higher and also thermo panels that should be
used for water heating in homes, hospitals, hotels, etc.. in cities. Also, was not properly
considered by the PNE 2030 the great potential of biomass that exists in Brazil, where
production of electricity from biomass is estimated to be around 10 TWh / year (10,000
GWh / year), to provide for the use of only 4,75 GW in 2030 corresponding to 2.1% of
power to be installed by 2030.
The PNE 2030 established the use of a power of 1.3 GW in power plants using
municipal waste which corresponds to 0.6% of the total capacity planned for 2030,
which is very little because Brazil produces 195,000 tonnes of waste urban solid
(garbage) per day that would be totally recovered enough to supply 30% of electricity
demand in Brazil today. Unfortunately, the PNE 2030 provides a capacity of 8 GW in
nuclear power in 2030, going against the global trend of banning the use of nuclear
power especially after the Fukushima accident in Japan. Besides, it will also be installed
6

7. irrationally 2 units on the banks of the São Francisco River attempting against the logic
that would indicate its best location close to the markets to be supplied.
2.2- Petroleum and natural gas sector in Brazil
In 1997, the petroleum investment law was approved with the liberalization of its
production and establishing a legal framework to regulate the petroleum industry. The
main objectives of the law was the creation of CNPE and ANP, increased use of natural
gas, increased competition in the energy market, and investments in power generation.
The state monopoly of petroleum and gas is over and energy subsidies were reduced.
However, the government maintained control of the complex monopoly power, in
addition to managing the price of certain energy products. Brazil is the 15th largest
petroleum producer in the world. Until 1997, Petrobras exercised a monopoly on
exploration, refining and transportation of petroleum in Brazil. With the end of the
monopoly, many private petroleum companies are involved in oil exploration.
Petrobras is a major world petroleum producer with production of over 2 million barrels
of oil equivalent per day. It is also a major distributor of petroleum products that has oil
refineries and oil tankers. In 2006, Brazil had 11.2 billion barrels and the second largest
proven petroleum reserves in South America after Venezuela. The vast majority of
proven reserves are located in the Campos and Santos basins, offshore southeastern
Brazil. In November 2007, Petrobras announced the discovery of petroleum in pre-salt
layer that believes it has between 5 and 8 billion barrels of recoverable light oil and
neighboring fields can contain up further, which could result in Brazil, becoming one of
the largest petroleum producers in the world. In late 2005, proved reserves of natural
gas in Brazil were 306 billion m3 and reserves as possible, should be 15 times larger.
Until recently, natural gas was produced as a by-product of the petroleum industry. The
main use reserves are located in the Campos and Santos basins. Petrobras controls more
than 90 percent of natural gas reserves in Brazil. Inside Brazil's pipeline systems are
operated by Transpetro, a subsidiary of Petrobras.
The National Energy Plan (PNE 2030) prepared by the federal government shows in
Figure 3 the consumption of petroleum by sector in 2009 in which one realizes that
7

8. most petroleum was directed to the industrial and transport sectors, totaling 64% of the
total.
Figure 3- Consumption of petroleum by sector in 2009-%
Consumption Energy sectorResidential
in 5% 6% Commercial
transformation
4% Public 0%
1%
Final consumption
Agricultural
not energy
6%
14%
Industrial Transport
13% 51%
Source: PNE 2030
Table 1 shows the demand for liquid fuels by sector in Brazil.
Table 1- Structure of demand for liquid fuels by sector
LIQUID FUELS DIRECTION OF LIQUID FUEL %
Kerosene Transport (aircraft) 98
Alcohol Transport (cars) 95
Gasoline Transport (cars / trucks) 100
Diesel oil Transport (cars / trucks) 78
Agricultural Sector 14
Generation of electricity 6
Fuel oil Transport (vessels) 11
Industry 61
Generation of electricity 10
Liquefied petroleum gas (LPG) Households 80
Services 11
Naphtha Industry (Non-energy use) 100
Fonte: PNE 2030
8

9. Any solution that contributes to reducing the consumption of oil should lead to the use
of substitutes for gasoline and diesel in the transport sector and for the fuel oil in
industry. Among the substitutes for gasoline and diesel in the transport sector may be
cited as ethanol and biodiesel in the short term and hydrogen in the medium term. The
fuel oil substitute most appropriate in the industry and LPG in homes and services
would be natural gas because it is the cleanest fossil source of fossil fuels.
It is very large the potential for production of ethanol and biodiesel in Brazil. Many
analysts question the production of ethanol and biodiesel arguing that can compromise
food production. In Brazil, there would be no conflict between energy production and
food production provided there is an agricultural and energy policy interconnected.
Effort should also be made towards using hydrogen which presents itself as the energy
source of the future.
Figure 4 and Figure 5 show, respectively, the structure of consumption of oil and
natural gas in Brazil in 2005 and 2030.
Figure 4 - Structure of consumption of oil products in 2005 and 2030
Source: PNE 2030
9

10. Figure 5 - Structure of natural gas consumption in 2005 and 2030
Source: PNE 2030
The PNE 2030 provides almost double the production of oil compared to 2010, as is
indicated in Table 2.
Table 2- Production of oil products in 2010 and 2030 (Millions of liters)
OIL PRODUCTS 2010 2030
Diesel oil 51.243 97.876
Gasoline 19.580 42.190
LPG 13.866 24.888
Fuel oil 8.079 9.112
Kerosene 3.868 9.902
Total 96.636 183.968
Fonte: PNE 2030
The natural gas production in Brazil was 45 million m3 in 2005, 69 million m3 in 2010
and should reach 201 million m3 in 2030 (4.5 times that of 2005 and 2.9 times that of
2010), according to the projection PNE 2030. The significant increase in production of
10

11. petroleum and natural gas in Brazil by 2030 will contribute to the greenhouse effect in
the atmosphere with its catastrophic consequences for the environment of the planet.
To help to prevent catastrophic climate change on our planet, urge the adoption of
policies aimed at implementing programs that contribute to the reduction of production
and consumption of oil and natural gas, as well as its substitution by other energy
resources. In this sense, we need to make: 1) substitution of petroleum products by
renewable energy (ethanol, biodiesel and biomass); 2) energy savings in the use of
petroleum and natural gas; 3) production of petroleum and natural gas mainly for non-
energy purposes as industrial raw material; and, 4) abandonment of investment in
petroleum and natural gas production in pre-salt layer.
2.3- The energy matrix of Brazil
Figure 6 shows the share of energy sources in the Brazilian energy matrix in 2009.
Figure 6 - Domestic energy supply in Brazil in 2009 -%
Other renewable
4%
Sugarcane
products
18%
Petroleum
Firewood and
and oil products
charcoal
38%
10%
Hydraulics and
electricity
15% Natural gas
9%
Uranium Mineral coal
1% 5%
Source: PNE 2030
Table 4 shows the share of energy sources in the Brazilian energy matrix in 2009 and
2030 presented at the PNE 2030. Compared with the year 2009, there will be in 2030 a
drop in the share of petroleum and oil products, hydraulics and electricity sources and
firewood and charcoal and increase of natural gas, mineral coal and uranium.
11

12. Table 4 - Domestic energy supply in Brazil in 2009 and 2030 -%
FONTE DE ENERGIA 2009 2030
Petroleum and oil products 38% 28%
Natural gas 9% 15%
Mineral coal 5% 7%
Uranium 1% 3%
Hydraulics and electricity 15% 13%
Firewood and charcoal 10% 6%
Sugarcane products 18% 19%
Other renewable 4% 9%
Total 100% 100%
Source: PNE 2030
Table 5 shows the share of renewable energy in the Brazilian energy matrix. In the
Brazilian energy matrix, renewable energy participated in 2010 with 43% of total
consumption, while in 2030 will be 46.6%. This means that there will not be great
progress in Brazil in the use of renewable energy with the PNE 2030 despite its
immense potential.
Table 5 - Renewable and non-renewable energy in the Brazilian energy matrix-%
YEAR Renewable sources Non-renewable sources
2005 44,5 55,5
2010 43 57
2020 45,8 54,2
2030 46,6 53,4
Figure 7 shows that CO2 emissions remain high despite the slight drop from 2012 to
2030 setting the PNE 2030 does little to mitigate the causes of climate change on the
planet.
12

13. Figure 7 - Evolution of CO2 emissions
Source: PNE 2030
The slight decrease in the emission of CO2 in the atmosphere is insufficient to Brazil
contribute to combat global warming. A great irrationality of Brazilian government is
related to the decision to invest U.S.$ 174.4 billion in petroleum exploration in the pre-
salt layer in the next five years going against the fight global warming. To help to prevent
catastrophic climate change on our planet, urge the adoption of policies aimed at implementing
programs that contribute to the reduction of production and consumption of oil and natural gas,
as well as its substitution by other energy resources.
3. ENERGY POLICY REQUIRED TO BRAZIL
3.1- Policy required for the electric sector
Greenpeace has developed three scenarios for the electric sector in Brazil for the year
2050. The first is the Reference Scenario 2050, based on the study "Electricity Market
2006-2015" prepared by the Energy Research Company (EPE), linked to the Ministry of
Mines and Energy (MME). The second is the Intermediate Scenario 2050, prepared by
GEPEA (Group of Energy of the Department of Engineering of Energy and Electrical
Automation from USP-Universidade de São Paulo) in partnership with Greenpeace.
And the third is the Energy Revolution Scenario 2050, prepared by Greenpeace. In the
production of all scenarios, the GEPEA / USP was responsible for implementing the
modeling and the technical supervision of the work.
13

14. In Intermediate Scenario 2050 and the Energy Revolution Scenario 2050, the generation
of electricity from different technologies for electricity production is complemented by
efforts in the conservation and rational use of energy (energy efficiency). The five key
principles that guided the Energy Revolution Scenario proposed by Greenpeace are: 1)
Implement renewable solutions, especially through decentralized energy systems, 2)
Respect the natural limits of the environment, 3) Gradually eliminate the unsustainable
energy sources; 4) Promoting equity in resource use and, 5) Unlink economic growth in
the consumption of fossil fuels.
According to Greenpeace, greatly enhance energy efficiency is a crucial prerequisite to
meet the demand from a renewable energy matrix essentially. In the Energy Revolution
Scenario 2050, final electricity consumption reached 1009 TWh / year in 2050, or about
38% less than the consumption of Reference Scenario 2050. Energy efficiency measures
have the potential to reduce consumption at 413 TWh / year, deferring the need to
increase the generation of electricity during the period of analysis. This progressive
reduction in consumption should be achieved through the use of efficient electrical
equipment in all sectors. Other measures, such as awareness of society to conserve
electricity and management of electricity demand to shift peak usage intense, are
essential to achieve this reduction.
The Electric Sector Scenario 2005
According to the Ministry of Mines and Energy (MME), Brazil produced 367 TWh /
year of electricity in 2005. Renewable energy participated with 88% of total electricity
generation In 2005. The national electricity matrix in 2005 was composed as follows:
Total generation: 367 TWh / year
Energy source %
Hydropower 84
Natural gas 4
Biomass and waste 4
Wind 0
Nuclear 3
Diesel and fuel oil 4
Coal 1
Photovoltaic panels 0
Total 100
The Electric Sector Reference Scenario 2050
14

15. In the Reference Scenario 2050, final consumption of electricity, which was 367 TWh /
year in 2005, reached 1639 TWh / year in 2050, an increase of 4.5 times in 45 years. In
the Reference Scenario 2050, there would be no progress in the share of renewable
energy in total electricity generation that would reduce from 88% in 2005 to 57% in
2050 and the contribution of energy efficiency would be negligible. In 2050, the
national electricity matrix will be composed as follows:
Total generation: 1639 TWh / year; Energy Efficiency: 0 TWh / year
Energy source %
Hydropower 38
Natural gas 34
Biomass and waste 15
Wind 4
Nuclear 6
Diesel and fuel oil 3
Coal 0
Photovoltaic panels 0
Total 100
The Electric Sector Intermediate Scenario 2050
In the Intermediate Scenario 2050, GEPEA / USP considered energy savings through
energy efficiency measures, of 413 TWh / year, with a total generation of electricity
much smaller (1160 TWh / year) compared to 1639 TWh / year specified in the
Reference Scenario 2050. On the way proposed by GEPEA / USP, was reduced
electricity generation using fuel oil and diesel and considered a gradual reduction in
nuclear generation from 2030. The share of renewable energy in the Brazilian energy
matrix would reach 72% which is lower than that recorded in 2005 (88%).
Total generation: 1160 TWh / year; Energy efficiency: 413 TWh / year
Energy source %
Hydropower 40
Natural gas 25
Biomass and waste 24
Wind 8
Nuclear 2
Diesel and fuel oil 1
Coal 0
Photovoltaic panels 0
Total 100
15

16. The Electric Sector Energy Revolution Scenario 2050
In the Energy Revolution Scenario 2050, 88% of the electricity produced in Brazil
would be from renewable sources of energy, equivalent to its share in 2005 (88%). The
generation of 1077 TWh / year would be expected and there would be an energy savings
of 413 TWh / year through energy efficiency measures. The Energy Revolution package
excludes the generation of electricity from fuel oil, diesel, coal and nuclear.
Total generation: 1077 TWh / year; Energy efficiency: 413 TWh / year
Energy source %
Hydropower 38
Natural gas 12
Biomass and waste 26
Wind 20
Nuclear 0
Diesel and fuel oil 0
Coal 0
Photovoltaic panels 4
Total 100
The Energy Revolution Scenario 2050 for the electric sector in Brazil proves to be
possible to pursue the dream of clean energy growth, supported by renewable energy
sources. The national electrical grid can become 88% renewable by 2050. Furthermore,
this array would help consolidate Brazil's commitment to cut by 2020 from 36% to 39%
the emissions of greenhouse gases, with the added benefit of promoting the economy
billions of dollars.
The challenge of reducing emission levels of greenhouse gases, allowing economic
growth and serve about 1 million people without power in the Country requires the use
of clean and sustainable sources of energy such as wind, biomass, solar photovoltaic,
solar thermal and hydropower, among others. The future of Brazil and the planet
depends on the redirection of subsidies today intended for conventional sources and
polluting fossil fuels - which will be depleted in the future - to renewable sources. The
future requires an energy revolution as proposed by Greenpeace for the electric sector in
Brazil.
At the center of this revolution is a change in the way electricity is generated,
distributed and consumed. The application of solutions towards a cleaner future goes
through decentralized systems, gradual elimination of unsustainable energy sources and
16

17. promoting equity in the use of natural and energy resources, unlinking economic growth
from increased consumption of fossil fuels.
The Brazilian electric system that presents nowadays many weaknesses in their
planning to set or choose projects to be implemented, many of them detrimental to the
environment, would be radically changed with the energy policies implemented on the
Energy Revolution Scenario 2050. In this scenario, would be abandoned current energy
policies that provide for the deployment of large hydroelectric dams in the Amazon
Region that will produce serious environmental impacts on the Amazon forest and
indigenous peoples, the deployment of nuclear power plants subject to risks of accidents
and problems of end disposal of nuclear waste and the deployment of conventional
power plants based on fossil fuels (coal and natural gas) generators of CO2 emissions
into the atmosphere.
The policy of supplying electric power required for Brazil should consider the
following:
 Deploy SHP (small hydro power) or medium-sized hydropower and wind
turbines in several regions of Brazil rather than large hydropower for electricity
supply in Brazil, as has been the practice of the federal government's for many
years.
 Deploy wind farms and hybrid systems in locations most appropriate.
 Implement systems for solar photovoltaic or thermo where they justify.
 Produce energy using biogas from landfills.
 Produce energy in small and medium-scale and distributed in markets near the
sources of production instead of concentrated production of electricity by large
hydroelectric dams located far from markets energy consumers.
 Produce energy with conventional power plants using natural gas that is the
cleanest fossil source.
 Produce electricity with conventional power plants using natural gas (the
cleanest fossil source), wind turbines and solar photovoltaic or thermo systems
where justify their deployment to complement the hydroelectric generation.
 Produce energy in the medium and long term with the use of hydrogen.
 Abandoning nuclear power as an alternative energy to be costly and present
safety problems.
17

18.  Save energy in all sectors of activity of Brasil.
 Deploy cogeneration system in the industry to produce steam and electricity
using waste industrial production and natural gas.
 Increase reliability in the operation of the electric system to minimize the effects
of blackouts using duplicate protection systems at critical supplies, duplication
of major trunk lines of transmission and use of wind turbines close to the power
grid.
3.2- Policy required for the petroleum and natural gas sector
Any solution that contributes to reducing the consumption of oil requires the use of
substitutes for gasoline and diesel in the transport sector and for the fuel oil in the
industry. Among the substitutes for gasoline and diesel in the transport sector may be
cited as ethanol and biodiesel in the short term and hydrogen in medium term. The
replacement of fuel oil would be more appropriate by natural gas in the industry because
is the cleanest source of fossil fuels.
To help to prevent catastrophic climate change on our planet, it is urgent to reduce
petroleum products consumption by adopting policies aimed at implementing programs
that contribute to their replacement by other energy resources. In this sense, we need to
make: 1) replacement of gasoline by ethanol and diesel with biodiesel in the short term
in the transport sector, 2) replacement of gasoline and diesel by hydrogen in the medium
and long term in the transport sector; 3) substitution of fuel oil by natural gas and
biomass in the industry, 4) replacement of coal by natural gas in the industry; 5)
substituting diesel by biomass and natural gas in the energy sector, and, 6) replacement
of LPG by natural gas in households and services sector.
Additionally, it is essential to adopt energy policies in Brazil aimed at implementing
programs that contribute to the reduction of petroleum consumption through energy
saving actions. These policies are as follows: 1) to produce steam and electricity in
industry with the use of cogeneration systems, 2) to encourage automakers and trucks in
order to raise the efficiency of motor vehicles to save energy, 3) to expand the railway
systems and waterways for freight transport instead of trucks, 4) to increase the public
transportation system, especially the mass transport of high capacity as the subway or
LRT (light rail vehicles) to reduce the use of cars in cities; 5) to restrict the use of cars
in town centers and other areas of the cities; 6) to encourage the manufacture to increase
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19. machinery and equipment efficiency to save energy, and, 7) to use petroleum to non-
energy purposes, mainly as industrial raw material.
4. CONCLUSIONS
Taking into account the above, it can be said that sustainable energy policies required
for Brazil should consider the following:
1) Put into practice actions that contribute to the viability of the Energy Revolution
Scenario 2050 proposed by Greenpeace for the electric sector.
2) Adopt energy planning in Brazil on a rational and systemic basis.
3) Ensure the participation of states and municipalities in Brazil's energy planning so
that the needs of regional and local development of the energy sector are considered.
4) Overcoming barriers to the penetration of renewable political, legal, financial, tax,
technology, information, education and training.
5) Create an appropriate legal framework to support the development of renewable
sources of energy in Brazil.
6) Provide funding to investors in renewable energy to eliminate their risk aversion
represented by the high cost of production, the market is not yet well established,
the technology was not widespread and the scale of production is reduced.
7) Promote the full or partial tax exemption for renewable energy.
8) Ensure access to transmission and distribution of electricity to small independent
producers.
9) Recognize the social and environmental costs when comparing conventional
technologies and renewable technologies.
10) Impose taxes on carbon emissions and other pollutants in the operation of energy
enterprises.
11) Overcome obstacles in research, development and demonstration centers in Brazil
reinforcing the existing R & D and creating new ones.
12) Prepare the industrial apparatus to support the goals set for renewable sources.
13) Educate the rulers and the population of non-energy benefits, such as increased
income or employment generation offered by local renewable energy.
14) Increase federal support for renewable energy programs.
15) Develop a solid legal, regulatory and institutional architecture in order to reduce
risks for investors and financiers of renewable energy.
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20. 16) Articulate retail banks, regional development banks and development agencies to
promote renewable energy.
17) Strengthen the role of ANEEL and ANP so that they act with effectiveness in the
development of the energy sector in Brazil.
Renewable energy could be more involved in the Brazilian energy and energy savings
would be greater if it were eliminated one of the main obstacles posed by Eletrobras and
electric utilities, as well as by Petrobras that impede the realization of an national
energy planning on a rational and systemic basis in which Brazil's interests are above
the goals of corporations as occurs today which favor the use of large hydroelectric
plants and petroleum products and not making efforts to use renewable energy and save
energy because, in the latter case , would reduce the revenue of companies in the energy
sector.
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