03 - CERPCH - Unifei

NEWS
PROINFA AND THE RELATION WITH TODAY'S MARKET OF RENEWABLES
Translation Adriana Candal
Facing the recent energy actions, it is mandatory to highlight the increasing relevant role of the renewables and their participation in
the world's energy matrix. The unending concern with the environment and the feasibility of sustainable sources encourage the world's interest
in generating clean and renewable energy. According to information provided by the websites of the Ministry of Mines and Energy
(MME) Brazil lies in a privileged position regarding the use of renewable sources of energy.
In Brazil, 43.9% of the Internal Energy Offer (OIE) is renewable, whereas the world average is only 14% and in the developed countries
no more then 6%. Facing this reality, the government created PROINFA (a program that encourages power production out of alternative
sources of energy) aiming at the installation of 3,300 MW of capacity, distributed among wind, biomass and Small Hydropower Plants
(SHPs) projects, that would become part of the Interconnected Electric System (SIN). The generated energy is purchased by Eletrobrás (a
federal owned company) through 20-year-long contracts.
The program aims at diversifying the Brazilian energy matrix, making it more competitive in the internal and external markets and
highlighting the technical, environmental and social and economic benefits of generation projects that use clean sources of energy. After
six years, PROINFA is outstanding due to its pioneering character and the success of the projects that showed and evident vocation of the
country towards a sustainable electric matrix by generating 3.3 GW of clean energy. This scenario reflects the change in the Brazilian energy
matrix and the implementation of new ways to use the Brazilian potential, complementing the Interconnected Electric System. It is
estimated that by the end of this year, 68 enterprises will be operating, resulting in an addition of 1,591.77 MW to the System.
The expert in infra-structure of the MME, Mr. Lívio Teixeira says that there are 49 SHP enterprises today, generating 977 MW and 13 projects
that are being constructed, which will result in 203 MW, 1,181 MW in SHPs altogether.
The market and today's scenario
The director of the department of energy development of the
MME, Mr. Hamilton Moss believes that PROINFA was an essential instrument
to spur the SHPs and the projects using wind and biomass
energy. He highlights today's participation of wind plants in
the market “Brazil does not have a tradition as far as wind energy is
concerned, that is the reason why this source caused the most relevant
impact on the market. From now on, the Brazilian market is
well-positioned in the auctions exactly because of the competitive
prices that wind energy and the other sources are offering.”
According to Mr. Moss the great expectation of the recent renewable
auctions is that the costs can meet the demand of the sector
and the demand of the entrepreneurs, so that the can find
space to install their enterprises. Before this new competitiveness
phase, Mr. Moss also says that it is always necessary to be observing
the market, for if any source presents difficulties within this scenario,
it is possible to carry out auctions for these specific sources.
This way there would be competition only among sources of the
same origin. But at the moment we are having competitiveness of
all of the sources as a whole.”
Challenges of the Project
Among the objectives and projects proposed by PROINFA the
source that showed that least offer was biomass. Facing this reality,
Mr. Moss explains that biomass is not used only for electric energy
generation applications, and that is why entrepreneurs think
it is more attractive to invest in other activities. “It was important
to learn that because it was possible to identify some difficulties
specifically from biomass. Other auctions were then carried out
and this source showed itself as being very productive”.
The general coordinator of alternative sources of energy of the
MME, Mr. Roberto Meira says that at the beginning of the program
the concept of energy cogeneration was still getting ripe. “PROINFA
was a program that aimed at convincing the feasibility of that type
of generation and the biomass went through that phase. The great
difficulty was to show its economic feasibility, its competitiveness
and its economic and technical potential.” Mr. Meira also highlights
that PROINFA was launched at a time when the market was busy
looking for machinery, causing a rise in the cost of equipment “the
national industry itself was not able to meet the growing demand.
It is impossible to supply the market with the proper speed and this
way, the cost was high and so were the tariffs”.
Energy Auctions
According to the Energy Research Company (EPE) the auctions
of alternative sources of electric energy of 2010 (A-3 and Reserve)
carried out on August 25th and 26th traded a volume of 2,892.2
MW of installed power, resulting in a volume of 1,159.4 MW of average
energy. &0 wind plants, 12 biomass thermal power plants and
seven SHPs participated.
Mr. Moss believes that the present repercussion of the wind
plants in the auctions happened because of the success of
PROINFA. “Before PROINFA 22 MW of energy from wind plants
were installed, today there are almost 800 MW and by the end of
the year this value is going to increase.” He recognizes the success
of the SHPs in the program and says that Brazil has a hydraulic tradition
as far as energy goes. “The country already had an equipment
tradition, all the technicians are able to offer quality services
and there are institutions such as the CERPCH (National Center of
Reference for Small Hydropower Plants).
She goes on saying that PROINFA arrived at a moment when
the SHPs were already mature and ready to start, being able to occupy
their space. “PROINFA was omportant for the SHPs before the
auctions phase when the sources are equally competing against
each other. It helped SHPs tp face some difficulties and improve
their participation in the market of renewable sources”. For Mr.
Moss the great advantage of the auction is the possibility of setting
subjective assessments aside such as saying that the SHPs are devalued
because they got a lower price in comparison to the other
sources of energy. “When you establish a lower price for a certain
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