Proposals for the Power Sector from Brazilian Presidential Cantidates
Getting closer to the Brazilian presidential elections, our Energy and Infrastructure Team summarized the key points on the published governmental programs publicized by each candidate concerning the power sector:
• Making the power sector one of the main country’s growing and development pillars, upon a material reduction on the existing red tape, simplification of processes and privatization;
• Focus on the renewable energy sources in the Northeast of the country, supporting wind and solar power sources; and
• Indication that the infrastructure sector could be led by retired military forces.
• Priority on investing in infrastructure, upon the establishment of partnerships the private sector;
• Growth of the Brazilian economy competitiveness; and
• Development of policies that encourage the potential of Brazil’s North and Northeast regions on supporting the production of renewable energy.
• Implementation of bulk of investment directed to the power sector, including wind, solar, biomass and other renewable energy sources;
• Creation of a governmental fund that will invest in infrastructure, backed by bonds issued based on a debt securitization by the public sector;
• Stimulate the dialogue among the numerous governmental bodies, including state and local governments, that are involved in studies and actions that lead to auctions and Public Private Partnerships; and
• Making the power sector rules clear and increasing the efficiency of the regulatory agencies, as well as the Judiciary Power by providing a stable legal environment.
• Focus on reaching a stable legal environment on the power sector, in order to attract investors and consolidate a sustainable power matrix that generates the lowest possible investment and operational costs, resolving numerous problems resulting from the lack of management by the previous governments;
• Development of policies the generation of clean, renewable, distributed and efficient energy;
• Creation of a mass program for the installation of photovoltaic solar powered energy generators, distributed at cities and vulnerable communities;
• Promotion of the alignment of the public policies (especially the economic, tax, industry, power, agricultural, livestock, forest, residual management and infrastructure policies) with the general objectives of the Paris Treaty, in order to honor the commitments made by Brazil upon its Nationally Determined Contribution (NDC), seeking bringing to zero emission of greenhouse effect gases until 2050;
• Bringing again Petrobras to the leadership of investments in clean energy; and
• Analysis of Eletrobras’ privatization in the light of the national energetic policy, which must modernize its strategies in order to include renewable energy, but with its distribution companies transferred to the private sector.
• Building a new power model, which will have as guidelines (i) resumption the public control, by ceasing privatizations; (ii) promotion of a strategic inflection of the power matrix, directing investments to the expansion of the generation of renewable energy (solar, wind and biomass); (iii) fair tariffs; and (iv) social inclusion;
• Resumption of Eletrobras strategic role at Brazil’s power sector, as leader on the power generation and transmission in the country;
• Giving back Petrobras role as a strategic development agent in Brazil, becoming the sole operator of the Brazilian pre-salt oil fields;
• End of the emission of greenhouse effect gases until 2050;
• Investment on biofuels and renewable energy;
• Encouraging to the micro and minigeneration by allowing the sale of the exceeding power produced by homes, commerce and industry;
• Untying of the price adjustment to the daily volatility of a highly speculative market;
• Strengthening the Reluz Program and extending the Luz para Todos Program to isolated places in the Amazon;
• Installation of photovoltaic kits in 500 thousand homes per year; and
• Compensation of the countryside, forest and water people affected by energy projects, not only by providing compensation for the environmental damages, but also allowing them to become partners in the projects, receiving, for instance, royalties.
• Expansion of the renewable energy at the power matrix; and
• Termination of the subsidies for non-renewable energy, for instance, gasoline and diesel.