Natural Gas Power Plants in the System Security Role – the Situation and Solutions in Brazil

Abstract

The purpose of this study is to analyse the regulatory obstacles for the development of thermal power plants in Brazil and the measures taken in this direction. It also discusses other actions by the Brazilian government that may contribute to the growth of untreated gas-fired thermal power plants. Using deductive and comparative research methods, the first part of this article focuses on the stage of thermoelectric power generation in Brazil. The subsequent sections present the main obstacles to the expansion of natural-gas power generation, how the Brazilian government has treated the expansion of natural-gas power generation, and other obstacles to the expansion of natural-gas thermal power plants. In raising the research question, the experience and lessons of other countries and the and the impact of policies on Brazil obtained by comparing the research results of the selected countries are revealed. Policies for the Brazilian market are proposed as the unification of electricity and natural gas agencies, update in the Brazilian Constitution to change regulation responsibility on gas distribution from states to the federal government, and the creation of a mathematical model to evaluate the trade-off between both energy sources.

Keywords: electricity sector, natural gas, energy and natural gas integration, natural gas power plant, Economic development