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PROSPECT OF TRANSITION INTO SUSTAINABLE ENERGY IN DEVELOPING COUNTRIES

PROSPECT OF TRANSITION INTO SUSTAINABLE ENERGY IN DEVELOPING COUNTRIES. ANA MARIA DE OLIVEIRA NUSDEO LÍVIA REGINA BATISTA UNIVERSIDADE DE SÃO PAULO JULY 4TH, 2014. ENERGY’S PARADOX. Energy as a crucial issue for the development Millenium Development Goals

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PROSPECT OF TRANSITION INTO SUSTAINABLE ENERGY IN DEVELOPING COUNTRIES

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  1. PROSPECT OF TRANSITION INTO SUSTAINABLE ENERGY IN DEVELOPING COUNTRIES ANA MARIA DE OLIVEIRA NUSDEO LÍVIA REGINA BATISTA UNIVERSIDADE DE SÃO PAULO JULY 4TH, 2014

  2. ENERGY’S PARADOX • Energy as a crucial issue for thedevelopment • Millenium DevelopmentGoals • Still, 1.3 billionpeoplehave no accesstoelectricityand 2.6 billionpeoplereliesontraditionalbiomass for energy • Energy use as a cause ofmanyenvironmentalproblems • Relianceonfossilfuelsandtheresulting GHG emissions JULY 4TH, 2014 ANA MARIA DE OLIVEIRA NUSDEO & LÍVIA REGINA BATISTA

  3. ENERGY TRANSITION • LEAPFROGGING: • Assumptionthatdeveloping countries todayhaveaccesstoefficientenergytechnologiesthatdidnotexistwhenrich countries wereat similar stagesofeconomicdevelopment • ENERGY LADDER: • Thereis no trade-off betweenpovertyalleviationandactionstocombatenvironmentalproblemsrelatedtoenergy use JULY 4TH, 2014 ANA MARIA DE OLIVEIRA NUSDEO & LÍVIA REGINA BATISTA

  4. “SUSTAINABLE ENERGY FOR ALL” JULY 4TH, 2014 ANA MARIA DE OLIVEIRA NUSDEO & LÍVIA REGINA BATISTA

  5. BRAZIL: “LUZ PARA TODOS” (LIGHT FOR ALL) • Decree n. 4.873/2003 • Goal: universal accesstoelectricitywithin 05 years • Decree n. 6.442/2008 • Decree n. 7.520/2011 • Social aspect: theprogrammeencouragesthepowerdistributioncompaniesto include the rural population in their grid at no costtothosebeneficiariesfamilies • Cross-subsidy: resourcesfrom “Energy DevelopmentAccount” (CDE) and “Global Reversion Reserve” (RGR) • Financingatlowinterest rates with CEF • No environmentalaspect JULY 4TH, 2014 ANA MARIA DE OLIVEIRA NUSDEO & LÍVIA REGINA BATISTA

  6. BRAZILIAN ENERGY MATRIX • The shareofrenewableenergyis 79.3% (MME, 2013) • Largehydroelectricplantsaccount for 70.6% • Problems: it is a renewablesourcebutnot quite sustainable, becauseof its social (displacementofriversidepopulations) andenvironmental (GHG emissions in its construction) impacts JULY 4TH, 2014 ANA MARIA DE OLIVEIRA NUSDEO & LÍVIA REGINA BATISTA

  7. BRAZIL: “PROINFA” (ALTERNATIVE ENERGIES) • Law n. 10.438/2002 • Goal: toincreasetheshareofsustainableenergy in Brazilianenergymatrix • Smallhydroelectricplants • Wind • Biomass • Short term: 3.300MW ofinstalledcapacityby 2008 • Longterm: shareof 10% in Brazilianenergymatrixby 2022 • Auctionstocontractsustainableenergy’sproject for a periodof 20 years • Financingatlowinterest rates with BNDES JULY 4TH, 2014 ANA MARIA DE OLIVEIRA NUSDEO & LÍVIA REGINA BATISTA

  8. BRAZIL: “PROINFA” (ALTERNATIVE ENERGIES) • 2008: only 1.274 MW ofinstalledcapacity in alternativeenergies • 2013: only 2.207 MW ofinstalledcapacity in windenergy, accounting for 1.1% ofBrazilianenergymatrix • Problem: • The costsofenergygeneration • The productionchainofwindenergyisnotinstalled in the country JULY 4TH, 2014 ANA MARIA DE OLIVEIRA NUSDEO & LÍVIA REGINA BATISTA

  9. CONCLUSIONS • A comprehensive perspective ofpublic policies isneeded • Commandandcontrolandeconomicinstrumentsshouldbeusedtogether • Suggestions: • Reduction in tax rates relatedtosustainableenergyproduction; • Renewable Portfolio Standards (RPS); • TradableRenewable Energy Credits (TRECs) JULY 4TH, 2014 ANA MARIA DE OLIVEIRA NUSDEO & LÍVIA REGINA BATISTA

  10. ANA MARIA DE OLIVEIRA NUSDEO Professor of Environmental Law at Universidade de São Paulo (ananusdeo@uol.com.br) LÍVIA REGINA BATISTA Graduate Student in Environmental Law at Universidade de São Paulo (liviarebatista@gmail.com)

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