The ABGD (Brazilian Association of Distributed Generation) developed a study with the objective of identifying the problems related to the Brazilian water crisis and, based on this, suggesting proposals that will help solve them in the short term. In the organization's understanding, it is more than essential to invest resources in the generation of renewable projects, aiming, firstly, to reduce the dependence on hydroelectric and thermoelectric plants in the Brazilian energy matrix, which currently correspond to more than 60%.
“The incentives for DG (distributed generation) are justified by the potential benefits that this modality can provide to the electrical system. Among them are the postponement of investments in the expansion of transmission and distribution systems, the low environmental impact, the reduction in network loading, the minimization of losses and the diversification of the energy matrix”, highlights the study.
To this end, ABGD points out that the approval of PL 5829 is an initial condition to ensure the sustainable growth of GD in Brazil. The text, written by federal deputy Lafayette de Andrada (Republicanos/MG), establishes guidelines relevant to legal security for new and already made investments.
The document was approved in the Chamber of Deputies at the beginning of the month, with almost 99% of the votes. However, to come into force, the proposal needs to be approved by the majority of the 81 senators and, subsequently, be sanctioned by President Jair Bolsonaro.
“Since April 17, 2012, when the Normative Resolution came into force ANEEL No. 482/2012, Brazilian consumers can generate their own electricity from renewable sources or qualified cogeneration and even supply the surplus to the distribution network in their locality. This is the micro and mini distributed generation of electricity, innovations that can combine financial savings, socio-environmental awareness and self-sustainability”, emphasizes ABGD.
Other recommandations
In addition to the approval of PL 5829, the association's study also recommends five other measures to be taken aimed at developing the national electricity sector. The first of these is to contribute to the improvement and actions resulting from Public Consultation 040/2021, which seeks to hire DGs in the manner provided for in Federal Decree 5.163/2004.
“CP 040/2021 proposes subsidies for contracting distributed generation in each concession area, which could result in the proliferation of solar energy plants and other sources, taking them to economically unattractive areas, but with other characteristics that enable technical benefits to distributors and the electricity sector”, highlights the document.
The second measure foresees the development of mechanisms to take advantage of subsidies currently granted to rural and low-income rural consumers. “An alternative incentive could be developed for rural consumers who opt for distributed generation. Additionally, it is recommended to provide financing sources with models capable of extending the investment maturity time, reaching up to five years”, highlights the entity.
The third solution highlighted indicates that it is necessary to promote the contracting of floating solar DG systems, including to reduce evaporation in the lakes of hydroelectric reservoirs.
According to ABGD, the existing infrastructure around hydroelectric reservoirs, such as substations and transmission lines, could be used with additional investments. “In addition, in the area covered by the floating panels, evaporation is reduced by up to 70%.”
As a reference, the association uses the example of a CHESF R&D (Research and Development) project at the Sobradinho-BA Hydroelectric Plant, where floating solar generation is already operating. “It would therefore be enough to replicate this same model. Other examples are located in Cristalina (GO) and the Billings dam (SP)”.
The fourth action, in turn, would be to establish mechanisms that benefit prosumers in an amount equivalent to the current tariff flag. “Prosumers” are the owners of distributed energy generating units that are interconnected to the transmission and/or distribution system.
“So, when there is a surplus of energy, they deliver it to the grid; when the opposite happens, they help themselves (…) For this public, justice will be done by remunerating the energy they inject into the grid with the value equivalent to the current tariff flag. This measure will not cause increased costs for other consumers, as it would only direct the amount paid for the energy to the one who, in fact, generated it.”
Finally, ABDD highlights as the last topic of the study the contraction of DG from urban solid waste, through public calls.
“This modality offers environmental benefits by reducing the amount of solid waste, solving problems arising from its final disposal, such as contamination of soil and groundwater. Economic advantages can be achieved by compensating, on the electricity bill, the value corresponding to the energy injected into the distribution network”.
Industry numbers
According to ABDD, the DG segment in Brazil already has a well-established equipment distribution network and financing sources, with around 17 thousand companies in operation, in addition to more than 150 thousand trained workers.
“These data reveal that it is feasible to implement 10 GW of installed power within two years, as long as PL 5.829/2019 is approved. According to EPE (Energy Research Company), according to the PDE-2031 study notebook, in a scenario of approval of the bill, in two years, the installed DG capacity will increase from 6 GW to 15 GW, adding 9 GW in two years.”
What will be the benefits?
According to ABGD, if the proposed measures are adopted it will be possible to “contribute, quickly and effectively, to reducing water scarcity, with the injection of a new 10 GW of installed power, over the next two years”.
With the generation of this power, the association believes that it would be possible to preserve, annually, around 15% of the current volume stored in the reservoirs, in terms of energy, without considering the multiple use of water.
Furthermore, the association points out that it would also be possible to reduce the hydrological risk of SIN (National Interconnected System) reservoirs, removing the risk of rationing, in addition to quickly and effectively reducing the need to use the Tariff Flag system, which could consume resources in excess of R$13 billion in 2021 alone.
The study also points out that the measures would provide a reduction in costs for consumers and would create an environment to leverage: private investments in the order of R$40 billion and the creation of 156.000 more jobs over the next two years. Finally, the association assesses that the listed actions would also help to reduce the country's dependence on thermoelectric and hydroelectric generation, which currently account for more than 60% of the total energy generated in the country.
