Economic Policy Evaluation for the Deployment of Alternative Energy Sources in Brazil

FCN Working Paper No. 13/2015

43 Pages Posted: 26 Jan 2016 Last revised: 26 Sep 2016

See all articles by Nicolás Chang

Nicolás Chang

RWTH Aachen University

Christian Oberst

German Economic Institute; RWTH Aachen University - E.ON Energy Research Center

Reinhard Madlener

RWTH Aachen University

Date Written: October 1, 2015

Abstract

In this paper we present an economic evaluation of scenarios for the future Brazilian power sector. We regard different paths for the capacity expansion with alternative energy sources aiming at the economically efficient diversification of the electricity mix. The scenarios are constructed in light of specific features of the Brazilian energy system, such as its enormous storage capacity, the imminent depletion of hydropower potential, and design characteristics of the regulated market. The economic relationships of the electricity generation sector are illustrated by micro‐economic models of industrial organization theory, parameterized with observed data from energy auctions and official market projections.

Keywords: Power system planning, energy transition policy, renewable energy

JEL Classification: D4, L1, Q42, Q48

Suggested Citation

Chang, Nicolás and Oberst, Christian and Madlener, Reinhard, Economic Policy Evaluation for the Deployment of Alternative Energy Sources in Brazil (October 1, 2015). FCN Working Paper No. 13/2015. Available at SSRN: https://ssrn.com/abstract=2721630 or http://dx.doi.org/10.2139/ssrn.2721630

Nicolás Chang (Contact Author)

RWTH Aachen University ( email )

Templergraben 55
52056 Aachen, 52056
Germany

Christian Oberst

German Economic Institute ( email )

Konrad-Adenauer-Ufer 21
Köln, 50459
Germany

HOME PAGE: http://www.iwkoeln.de/en

RWTH Aachen University - E.ON Energy Research Center ( email )

Mathieustrasse 10
Aachen, 52074
Germany

Reinhard Madlener

RWTH Aachen University ( email )

School of Business and Economics / E.ON ERC
Mathieustraße 10
Aachen, 52074
Germany
+49 241 80 49 820 (Phone)
+49 241 80 49 829 (Fax)

HOME PAGE: http://www.eonerc.rwth-aachen.de/fcn

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