Brazil's Electric Power Choices and Their Corresponding Carbon Emissions Implications

This study analyzes the options for meeting power demand in the Brazilianpower sector through the year 2015. Three policy cases are constructedto test economic and environmental policy measures against a baseline:advanced technologies scenario, environmental control scenario and carbon(C) elimination scenario. Least-cost modeling simulated these scenarios throughchanges in emissions fees and caps, costs for advanced technologies,demand side efficiency, and clean energy supplies. Results show that, in theabsence of alternative policies, new additions to Brazil's electric powersector will shift rapidly from hydroelectricity to combined-cycle natural gasplants. When the cost of environmental impacts are incorporated in theprice of power, the least-cost mix of electric power generation technologycould change in other ways. In all scenarios, energy efficiency andcogeneration play an important role in the least-cost power solution. Savingelectricity through increased efficiency offsets the needs for new supply andhas enormous potential in Brazil's industrial sector. Efficiency also reducesthe environmental burden associated with electricity production andtransmission, without compromising the quality of the services demandedby end users. Interesting enough, carbon dioxide (CO₂) emissions will remainrelatively low under almost every conceivable scenario.