In a country of continental dimensions like Brazil, guaranteeing and continuously improving the living conditions of the population is a monumental challenge. One of the strategies adopted to face this challenge is the Public-Private Partnership (PPP), a model of administrative concession contract that has become one of the main forms of action by the public power.
PPPs, as defined by Law 11,079/2004, are contracts signed between the public and private sectors, in which the private sector, upon payment, provides a certain service to the public sector. These contracts can last between 5 and 35 years.
In the sustainable energy sector, PPPs are playing an increasingly important role. A recent example is the Solário Carioca project, an initiative by the City of Rio de Janeiro that involves the installation of a solar power plant on an old disused landfill in Santa Cruz. The winning PPP consortium for this project was Rio Solar, formed by GNPW and V-Power Energia.
The Solarium Carioca is a milestone in the city’s energy transition. The solar power plant, which will have a power of 5 megawatts, will be installed on land that was previously a landfill, giving a sustainable destination to unused land. The energy generated by the plant will supply public properties, allowing for annual savings. The city hall estimates that the energy generated will be enough to supply about 45 municipal schools or 15 Emergency Care Units (UPA).
GNPW, leader of the winning consortium, is a company known for its work in the renewable energy sector. Through its subsidiary, Rio Poti Energia, GNPW invests in the development of sustainable and environmentally responsible generation projects. The two power plants of Rio Poti Energia in the state of Piauí are examples of renewable energy projects that do not emit polluting gases and have low maintenance costs, providing savings in energy consumption contracts under PPPs.
PPPs, therefore, are a valuable tool for the development of sustainable energy projects in Brazil. They allow the private sector to contribute its expertise and financial resources, while the public sector benefits from the provision of essential services and the savings generated. In addition, local communities and the environment also benefit from these partnerships, as they promote the use of clean, renewable energy and the reuse of unused land.
In conclusion, the rise of PPPs in Brazil’s sustainable energy sector is a positive development that has the potential to benefit not only the private and public sectors, but also local communities and the environment. With proper oversight and transparency, PPPs can be an effective tool to promote sustainable development in Brazil.