Ad hoc Expert Group Meeting on
Domestic Requirements and
Support Measures in Green Sectors:
Economic and Environmental Effectiveness and Implications for Trade
13−14 June 2013
Salle XXI, Palais des Nations, Geneva
Notes on Domestic Requirements
and Support Measures for
Renewable Energy Sources in Brazil
Alexandre Comin, Director
Department of Industrial Competitiveness
Ministry of Development, Industry and Foreign Trade (MDIC)
This presentation is reproduced by the UNCTAD secretariat in the form and language in which it has been received.
The views expressed are those of the author and do not necessarily reflect the view of the United Nations.
Notes on Domestic Requirements and
Support Measures for Renewable Energy
Sources in Brazil
UNCTAD Ad Hoc Expert Group Meeting
Geneva, 13 June, 2013
Alexandre Comin, Director
Department of Industrial Competitiveness
Ministry of Development, Industry and Foreign Trade (MDIC)
Key messages
• Industrial policy for renewables calls
for new rationale.
• Brazilian support to renewables
focus on local investment and R&D.
• Local conditions matters.
3
General remarks
Green economy
From an economy of scarce resources to an
economy of plenty resources:
• Avoid consuming all fossil energy resources: CDM,
carbon tax, ETS etc.
• Search of alternative resources: oriented R&D and
industrial development
 Renewables industrial policy cannot cope
with current market signals neither with
foreseeable cost benchmarks.
5
Local content for local fuels
Renewables deal with locally heterogeneous
fuels and social and technical conditions:
• Biofuels: soil, climate, alternative land uses
• Wind power: climate, “not in my neighborhood”
• Solar: insolation, silicon quality
 R&D efforts and knowledge of natural local
features are a precondition to long run industrial
development.
6
Brazilian experience with
renewables
International and Brazilian Energy Mix
WORLD (2007)
Total energy
12.7%
87.3%
OECD (2007) 7.2%
92.8%
BRAZIL (2009)
47.2%
0%
10%
20%
52.8%
30%
40%
Renewables
Electricity
50%
60%
70%
80%
90%
Non-renewables
WORLD (2007)
18.2%
81.8%
OECD (2007)
16.0%
84.0%
BRAZIL (2009)
89.9%
0%
10%
20%
100%
30%
Renewables
40%
50%
10.1%
60%
70%
80%
90%
100%
Non-renewables
Source: IEA
Bioelectricity = 5.5% of total electric generation
8
Total energy carbon emissions intensity, tCO2/toe
Selected countries and regions, 2008
Brazil, selected years
3.3
3.3
3.1
3.1
2.9
2.9
2.7
2.7
2.5
2.5
2.3
2.3
2.1
2.1
1.9
1.9
1.7
1.7
1.5
1.5
1.3
1.3
USA
Japan
Germany
China
OECD
World
2000
2005
2010
Source: IEA, Mining and Energy Ministry (Brazil)
9
Ethanol Production in Brazil:
long term Productivity growth
10
PAIIS
Joint Plan for Innovation in Sugarenergy and
Sugarchemicals, offers US$ 550+ from main
public development institutions (BNDES and
Finep) to support dozens of R&D projects for the
whole industrial chain: 2nd generation
bioethanol, bagasse treatment, enzymes,
catalyzers,
biotech,
new
products
(“alcoholchemistry”), biorefineries etc.
11
Cost competitiveness of wind power
Wind power is reaching grid parity quickly (US$
55 MWh). Currently, is second only to hydro
power, which is among the lowest cost sources
worldwide.
Considering seasonal complementarity between
rain and wind regimes, it has become a
competitive source for national grid as a whole.
12
Investment attraction
13
Impsa´s IWP-100
First Brazilian developed wind turbine
customized to especial wind conditions of
Northeast sites:
• More stable wind blowing (no gust)
• Adapted IEC61400-1 (Design Requirements of
Wind Turbines )
• Direct Drive Permanent Magnet Generator
• Federal (Finep) grants of US$150 mi (2009/12)
14
Metallurgical route to silicon purification
• Renewable electricity made from
renewable electricity with charcoal.
• Lower scale intensity.
• Less consumption of chemical and
other expensive raw materials.
15