Sustainable energy in Brazil: what is the importance of incentives?

Sustainable energy in Brazil: what is the importance of incentives?

Sustainable energy in Brazil has been evolving in recent years, but incentives are essential for its projection.

What is the development of sustainable energy in Brazil? With the climate changes and the imbalances that this causes, sustainability has gained prominence in several segments. It refers to the harmony between social, environmental and economic aspects. In other words, to be sustainable is to promote development and advances, respecting all natural aspects.

Following this logic, how is the relationship between energy and sustainability? Historically, energy production has been associated with pollution and destruction of the environment. But currently, in a scenario that needs to change, what are the options for investing in sustainable energy?

To better understand the options available in Brazil and the importance of incentives, read the content until the end.

Sustainable energy in Brazil

Although some countries still have limitations when investing in sustainable energy, either due to the lack of natural sources or conditions to expand their implementation, this is not the reality in Brazil.

The country has an abundance of the main sustainable sources, such as solar or photovoltaic energy, wind energy, rivers and currents for the generation of hydroelectric energy and organic matter for the generation of biomass and biogas. In addition, its continental extent and varied climate, allows the development of solar and wind power plants easily. However, investments are a major obstacle to the advancement of the sector.

The pandemic shed light on this type of energy generation, which helps diversify the matrix and reduces environmental impacts. In 2020, both the use of wind and solar energy grew in Brazil and expectations are that this will continue. After all, as the population and industry grows, so does energy consumption.

According to the National Energy Plan 2050, a high investment in the energy matrix is ​​necessary for the increased demand to be met, expanding the country’s installed capacity.

What are the incentives for sustainable energy in Brazil?

One of the main challenges for sustainable energy generation is economic. Investing in this type of matrix has a high cost and, at times, the investment is risky. After all, performance is linked to external factors and favorable climatic conditions, which cannot be controlled.

Bloomberg New Energy Finance (BNEF) estimates that by 2050, 77% of investments in new sources of energy generation will be in renewables. Therefore, it is clear how it is essential that there are government incentives for the market to keep up with this change.

Currently, there are some projects that aim at this incentive. The Program for the Development of Distributed Electricity Generation (ProGD) seeks to stimulate the sustainable energy microgeneration sector by creating favorable credit lines.

Another important incentive was ANEEL Normative Resolution 482, of 2012, which allowed the creation of local Distributed Generation systems, that is, in a single residence, condominium, commerce or industry. In addition, there are also charges on electricity bills, called the Energy Development Account (CDE), which benefits wind, solar, biomass and coal energy.

There are also agreements for exemption from the Tax on Circulation of Goods and Services. Some states enter into agreements for exemption from ICMS on operations with equipment and components for generating solar and wind energy. In addition to these, there are other projects in progress at the Chamber that deal with the importance of incentives for the generation of energy through clean sources.

Although some argue that the incentives for the green economy given over the years is sufficient to maintain and balance the market, when comparing Brazil’s energy sector with other countries, we can see how much we still need to move in this direction.


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