Delivering off-grid electricity systems in the Brazilian Amazon

Sustainable Development of Renewable Energy Mini-grids for Energy Access: A Framework for Policy Design

“…the Brazilian electricity regulator, ANEEL, sets the tariffs for both grid-connected and offgrid consumers, served by concessionaires. The connections and tariffs for low income consumers are subsidized to meet the Brazilian government's goal of providing universal access to electricity [25]. However, mini-grids, especially diesel-based mini-grids in the Amazon region that are not operated by concessionaires, are not regulated.…”

“…The electricity regulator, ANEEL, and the main government-run electricity company, Eletrobras, are the institutional support for electrification efforts in the field and manage project approvals and subsidy disbursals. There is no specialized agency for rural electrification [25]. In Brazil, the implementation of rural electrification efforts fell to distribution concessionaires according to their operational area.…”

“…Although the program focused mainly on grid extension, by 2009 Brazil's electricity regulatory agency, ANEEL, recognized that more than 250,000 households, a majority of them in the Amazon region, would be economically or technically unfeasible to be connected through grid extension. The Ministry of Mines and Energy issued a Special Project Manual, which included an 85% capital subsidy for mini-grids, especially with a focus on renewable energy, allowance for the use of prepaid metering, and the inclusion of rural cooperatives as implementation agents beside the concessionaires [25]. Brazil's program of RE mini-grids in the remote Amazon region is in its infancy with only 15 small hydro plants and one solar PV plant operating by 2010 [25].…”

“…The Ministry of Mines and Energy issued a Special Project Manual, which included an 85% capital subsidy for mini-grids, especially with a focus on renewable energy, allowance for the use of prepaid metering, and the inclusion of rural cooperatives as implementation agents beside the concessionaires [25]. Brazil's program of RE mini-grids in the remote Amazon region is in its infancy with only 15 small hydro plants and one solar PV plant operating by 2010 [25].…”

“…These, which include electrification level, human development index, potential productive end uses, and the existence of healthcare centers, schools, and minorities' settlements, among others, are used for evaluation of the project success. Subsidy disbursal has its own monitoring mechanism by directly verifying connections made on the field [25].…”