Review_Brazil:Opportunities left untaken

SWE 2014 08

Review Brazil Opportunities left untaken Wind energy in Brazil is booming – as the Mel 2 wind farm demonstrates here – but the trade in CO2 certificates is not. Photo: Iberdrola Renewable energy policy in Brazil is gaining momentum, favoured by a lot of tailwind. However, CO2 certificates are hardly playing a role in developing projects. In 2011, the Energy Research Company (EPE) calculated that 88.8 % of energy generation in Brazil is obtained from renewable energy sources, especially from hydropower (66 %) and biomass from renewable raw materials. Despite insolation values of between 1,500 and 2,200 kWh/m2 per year that are far above the European average, Brazil with its 35 MW of installed photovoltaic systems (2012) has so far been a dwarf in the solar industry. While mega reservoir dams now increasingly encounter social resistance because of severe environmental damage, Brazil has of late been far ahead of the pack in Latin America in terms of developing wind energy projects. According to the World Council for Renewable Energy (WCRE), wind farms with a capacity of 1,077 MW were installed in Brazil in 2012; as a result, the country’s total capacity more than doubled to 2,508 MW. Brazil far exceeds the 18.7 % global average for growth of wind energy. It is home to 70 % of all wind energy turbines put into operation in Latin America. According to the Brazilian Wind Energy Association Abeeólica’s calculations, investments for 38 new wind farms amounted to some € 2.7 billion in 2012 and are expected to reach the considerable sum of approximately € 16.6 billion by 2020. Investors can be expected to prick up their ears on hearing such figures. However, this development is not regarded as very favourable for the CO2 certification market. According to the Brazilian Ministry of Science and Technology (MCT), domestic CO2 credit projects only amount to about 7 % (compared to China: 55 %, India: 15 %) of the greenhouse gas reduction expected worldwide. And this is although, with an estimated 174 million t of CO2, the Brazilian certification market during the first period of the Kyoto Protocol provided an investment potential of some € 1 billion. Since some 37 % of the Brazilian project offers relate to renewable energy projects, experts estimate that Brazil should multiply its issue of CO2 credits fivefold to further develop wind energy projects. Yet so far just 400 MW of capacity in wind energy turbines has been financed on the cap-and-trade market. CO2 certificates practically of no importance In Brazil, the Interministerial Committee on Climate Change (Comissão Interministerial de Mudança Global do Clima) is responsible for registering and handling CO2 credit projects and checks every application before it is sent to the UN. It is solely legal entities (such as state or local governments, NGOs, cooperatives, associations and business enterprises) that are eligible; individuals are excluded from making applications. A case that demonstrates a successful renewable energy project is the Bandeirantes biogas generation plant in the Perus district, located in the São Paulo 14 Sun & Wind Energy 8+9/2014


SWE 2014 08
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