Study presents solutions for energy transition and low-carbon economy in Brazil

In December 2019, Fundação Getulio Vargas and Adam Smith International Limited (ASI) signed a contract with the Prosperity Fund, an investment fund managed at the time by the British government’s Foreign & Commonwealth Office. The purpose was to carry out studies on topics related to the energy transition and low-carbon economy in Brazil. Among other factors, social inclusion and gender equity were considered, which contributed to discussions of regulatory measures for the national electricity system.

Based on these studies, innovative regulatory measures were proposed, focusing on management of the Brazilian power system, including aspects, impacts and solutions involving low-income customers in this market. In light of the successful studies carried out and new horizons pointed to by this work, a report was written, presenting the main results obtained by FGV within the scope of the Brazil Energy Program.

FGV Projetos, Fundação Getulio Vargas’ technical assistance arm, was tasked with coordinating a series of activities involving different parts of the institution: the Center for Energy Studies (FGV Energy), the Center for Regulation and Infrastructure Studies (FGV CERI), the Center for Agribusiness Studies (FGV Agro), the Center for Sustainability Studies (FGVces) and FGV’s international representative office, FGV Europe.

Maurício Gouvêa, the leader of FGV Projetos’ Project Management Office and FGV Projetos’ Brazil Energy Program coordinator, explains, “The studies were notable for the distinctive way in which they dealt with the issue of the energy transition in Brazil, especially the integration of gender equality and social inclusion aspects with the analysis performed. In addition, one of the most striking characteristics of this project was the way it united different arms of FGV in order to tackle the proposed challenge, with FGV Projetos as the coordinator and manager of the studies carried out.”

The studied topics included:

• distributed energy resources for low-income people;
• a business model for distributed solar photovoltaic generation in low-income communities;
• market and pricing design for the market liberalization process;
• guidelines for opening up the electricity retail market;
• the biodiesel value chain and the decarbonization credits regime.

The full study is available here.