Neilton Fidelis da Silva

Chapter 15 – The Evolution of Brazilian Electricity Market

This chapter presents an analysis of the evolution of Brazilian electricity market. The first reform process liberalized the energy sector during the 1990s. However, the competition was not effective and the investment was insufficient, flaws that became evident during the power rationing of 2001/2002. During the second phase of reform in 2004, the State regained its planning role in the power sector and distribution companies were required to engage in long-term contracts through competitive auctions, which is the central theme of the second reform process. Currently, the most pressing challenge for Brazilian power sector is to provide electricity to a continuously growing market at affordable prices and to keep a clean energy matrix.

Hydroelectricity: Future Potential and Barriers

This chapter focuses on an assessment of the potential contribution of hydro resources to meet a significant portion of the global demand for electricity in the foreseeable future. It provides an overview of the current use of hydroelectricity worldwide and the potential of remaining untapped resources. The chapter also describes the existing barriers and constraints that limit the use of the remaining resources and introduces a number of suggestions to overcome the barriers. Further it discusses that the increased use of hydropower is among the options to decarbonize electricity generation. Hydroelectric power is a renewable and extremely low-carbon energy resource with significant untapped potential. Moreover, many developing countries are blessed with large potential that can be developed while avoiding serious environmental implications. Hydro resources, like all other energy resources, have their limitations and face barriers, in this case front-loaded infrastructure investments in reservoirs and transmission lines, but the benefits in terms of extremely low operating and essentially zero fuel costs are overwhelming.