The Future Expansion of HVDC Power Transmission in Brazil: A Scenario-Based Economic Evaluation

FCN Working Paper No. 14/2015

47 Pages Posted: 5 Oct 2016

See all articles by Christian Köhnke Mendonça

Christian Köhnke Mendonça

RWTH Aachen University

Christian Oberst

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

Reinhard Madlener

RWTH Aachen University

Date Written: September 2016

Abstract

We discuss the expected future needs of the Brazilian electric grid operators for High Voltage Direct Current (HVDC) transmission lines against the background of a changing electricity sector in Brazil. On account of the spatial mismatch between the additional generation potential and the expected future electricity demand, a need for investments in long-distance transmission capacity is postulated. Due to the low losses incurred, HVDC technology is particularly suitable for this. For the analysis, we use different expansion scenarios for the year 2035 that are mainly based on hydropower or alternative renewable energy sources (primarily wind and solar power). Linear optimization is used to determine the optimal HVDC transmission lines to connect regions. The results show that large investments in HVDC transmission are needed, especially in the case of hydropower expansion, and that transmission capacity is a critical factor in the process of expanding the renewable energy generation capacity in Brazil.

Keywords: HVDC transmission lines, Grid planning, Energy transition, Spatial mismatch

JEL Classification: Q4, A41, L94, C64, H54

Suggested Citation

Köhnke Mendonça, Christian and Oberst, Christian and Madlener, Reinhard, The Future Expansion of HVDC Power Transmission in Brazil: A Scenario-Based Economic Evaluation (September 2016). FCN Working Paper No. 14/2015, Available at SSRN: https://ssrn.com/abstract=2847136 or http://dx.doi.org/10.2139/ssrn.2847136

Christian Köhnke Mendonça

RWTH Aachen University ( email )

Templergraben 55
52056 Aachen, 52056
Germany

Christian Oberst (Contact Author)

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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