Constitutional aspects of distributed generation policies for promoting Brazilian economic development. (August 2020)

• Record Type: Journal Article
• Authors: Andrade, Jorge Vleberton Bessa de; Rodrigues, Bruno Noronha; Santos, Ivan Felipe Silva dos; Haddad, Jamil; Tiago Filho, Geraldo Lúcio
• Is Part Of: Energy policy. Volume 143(2020)
• Publication Date: 2020-08
• Subjects: Distributed generation -- Economic development -- Regulation -- Incentives; CCEE Chamber of Electric Energy Commercialization -- CMSE Power Sector Monitoring Committee -- CNPE National Council for Energy Policy -- MME Ministry of Mines and Energy -- ONS National Power System Operator -- REN Normative Resolution; Energy policy -- Periodicals; Politique énergétique -- Périodiques; Electronic journals; 333.79
• DOI: 10.1016/j.enpol.2020.111555
• Languages: English
• ISSNs: 0301-4215

Abstract

Abstract: State regulation in the electricity sector is essential for economic development and serves as a foundation for sustainability in the modern world. Several incentives have been put in place to stimulate energy generation through renewable resources in Brazil, starting with Decree 5.163 from 2004 and Normative Resolution – REN n o . 482 from ANEEL (National Electricity Regulatory Agency), which established ways for consumers to generate electricity for their own consumption using renewable sources, and to distribute this energy back to the grid via a net-metering system. This article addresses the issue of electric energy control, generation, and distribution, and gives new perspectives from within the Distributed Generation (DG) system. The main objective of this article is to analyze the incentive mechanisms for DG in Brazil from a constitutional standpoint, which were set forth to promote economic development in the Federal Constitution of 1988. Furthermore, this study discusses the regulatory nature of the State, and changes to its role in economic intervention, discussing economic development concepts for how regulation might impact the development and promotion of DG in Brazil. Highlights: Current Brazilian regulatory framework incentivizes decentralized generation. The evolution of the Brazilian electricity sector has allowed for growth in distributed generation. Distributed Generation rules and regulation is in alignment with constitutional principles. Incentivizing distributed generation promotes economic development in Brazil.