This week, the Brazilian Association of PCHs and CGHs (Abrapch) sent a letter to the Minister of Mines and Energy, Alexandre Silveira, presenting proposals and contributions to the Brazilian Electricity Sector (SEB), among them, the revision of the Ten-Year Energy Expansion Plan and the creation of a Priority Program for Environmentally Sustainable Small Hydroelectric Power Plants (PPPHS).
In the document, Abrapch brings data from the final government transition report and which contains, according to the Association’s board, a superficial analysis of the SEB, especially with regard to the increase in the contracting of 8,000 MW of thermal energy – more expensive and polluting – and of just 2,000 MW of PCHs.
“Supply the domestic electricity market with a combination of hydroelectric, wind, solar, “clean” thermal plants (biomass, biogas, solid waste) and with just a small amount of flexible natural gas thermal plants (within the limit of need to reinforce security of supply) – complemented by the necessary deactivation of fossil thermal plants, which are expensive and polluting – would be a much more advantageous solution to meet SEB’s demand, for a third of the final cost and with a reduction in emissions by more than 90%”, says the document.
According to the president of Abrapch, Alessandra Torres de Carvalho, the plan might define the correct and balanced division of energy sources. “It is necessary to indicate necessary measures for the feasibility of quantitative for each of the sources, pricing attributes and correcting commercial, fiscal and financial distortions of each one”, defends Alessandra.
National Scenario
In the last five years, 65 Small Hydroelectric Power Plants (PCHs) and 52 Hydroelectric Generating Centers (CGHs) – which produce up to 50 megawatts of energy – went into operation in Brazil, totaling 938.81 MW of installed capacity.
In all, the 117 small plants generated an investment of R$7.9 billion in different regions of the country.
Around 110 PCHs and CGHs are under construction or awaiting licensing. In addition, data – from the National Electric Energy Agency (ANEEL), obtained by Abrapch – indicate that 594 small power plants are in the Dispatch of Intent Registration phase for the Authorization Grant (DRI) or Declaration of Water Availability Reserve (DRS), so that the interested party can apply for the relevant Environmental Licensing at Organs competent bodies at ANEEL. Another 598 processes are in the available axis stage, which means suitable for users interested in the development of hydroelectric inventory studies.
These 1,192 processes at ANEEL prove that Brazil has the potential to expand its renewable energy generation capacity from Small Hydroelectric Power Plants by approximately 300%. “Representative investments might be even greater, reducing tariffs and eliminating future tariff flags”, says the president of the Brazilian Association of PCHs and CGHs (Abrapch), Alessandra Torres de Carvalho. The president explains that, with greater investment in PCHs and CGHs, it is possible to reduce the generation of thermoelectric plants, making Brazil produce cleaner and cheaper energy.
“We are going to reinforce the agenda of the need for greater tax equality and incentives in relation to other sources, for the commercial viability of the available projects”, he said.
Currently, the PCHs and CGHs together add up to 5,560 megawatts (MW) of energy generated. There are 1,046 plants in operation in the country.
Cleaner and cheaper energy
In the last 10 years, with the final result of the A-5, A-6, Reserve Auctions and Alternative Sources Auctions, the contracted amount of intermittent sources such as wind and solar approaches 10,000 MW, while that of Small Hydroelectric Power Plants has fluctuated around just 1,000 MW contracted.
“This has happened because the hiring took into account the lowest selling price of the source in the auction, without considering additional costs of these so-called cheaper projects, which in reality demonstrates that the lowest auction price is not the lowest. price for the final consumer”, warns the vice-president of Abrapch, Ademar Cury.
According to him, with the incentives of Eletrobrás capitalization Law 14,182 – which conditions the company’s privatization process to contracting at least 50% of the demand for PCHs until the 2,000 MW mark is reached – it would already be possible to increase by 30 % the number of small mills in Brazil. Abrapch estimates that there is a potential investment of R$131 billion in the sector.
“With the PCHs, it is possible to cover the hourly intermittence for R$ 300.00 to R$ 350.00 per MWh, instead of R$ 500.00 to R$ 1,600.00 per MWh of thermal plants, with emissions of up to 50 times smaller, without foreign exchange and strategic risk of fossil fuels in times of scarcity”, reinforced Ademar.
An important point to be considered is that small hydropower generation projects do not require the construction of robust lines paid for by consumers. Entrepreneurs, in this case, build and pay for their own transmission lines, not attributing extra costs to consumers, with the vast majority of plants located close to consumption centers. This goes a long way in bringing stability to the connecting systems with its steady energy, as well as delivering important ancillary services to the System.
Another positive factor of PCHs and CGhs is the generation close to the load – which reduces losses and with lower investments in transmission-, 100% national technology, job creation and capacity to regulate river flows.
Environmental benefits
The PCHs and CGHs have, among the advantages, the fact that they need reduced areas of flooding and that they serve the local community, dispensing with extensive transmission lines.
“In addition, the structures of the small plants protect the banks of the rivers once morest erosion and allow the use of water for irrigation, fish farming, supply and leisure. The energy generated by PCHs and CGHs is configured as the cleanest among other sustainable sources”, said ABRAPCH’s environment director, Gleyse Gulin.
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