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Part of wind energy’s success in Brazil has been due to the establishment of mechanisms to support renewables, such as the early 2000’s Brazilian National Program PROINFRA. Under this program, a total capacity of 3,300 MW was equally assigned to non-conventional electricity generation sources: wind, biomass and small hydropower. It guaranteed a fixed tariff for electricity generated, as well as access to the grid, for 20 years [36]5. Although the program suffered from various bottlenecks, by 2005 PROINFRA has facilitated the addition of 1300 MW of wind power capacity to the grid [36] [39]. Some years later, a new mechanism came into place: technology specific electricity auctions. The auctioning scheme (competitive bidding system) aimed to efficiently and cost-effectively increase the energy security of the country [36]. Through this policy vehicle, which remains valid today, producers and utilities enter long-term wind power purchasing agreements for 20 years6. The agreements provided certainty to investors (therefore easing project financing), fostered competition, and committed players to deliver results as only serious tenderers were allowed to participate in the auctioning [40][36]. Since 2005, these auctions have resulted in the contracting of more than 6,000 MW of wind power additional capacity [39]7. The PROINFRA program, as well as the specific technology tendering system, has demonstrated the effectiveness of encouraging participation of private companies in the renewable energy market. These initiatives are the main reason that Brazil is the today’s regional leader for wind energy generation and development. And the story isn’t over yet. Projections foresee 16,000 MW of installed wind energy capacity by 2021 [14]. The development of the Brazilian renewable energy sector is without a doubt a remarkable success in Latin America. Electricity generation from renewables has almost doubled in ten years. These supporting mechanisms have led to Brazil becoming the renewable energy giant of Latin America. 5 The PROINFRA program was conceived with two phases. Whereas the first one assigned 3300 MW of total capacity to renewable energy generation, the second established a 10 per cent renewable electricity target (excluding large hydro) within 20 years. So far, second phase has not been implemented [36]. 6 The tendering system is not exclusive to wind power purchasing, but for all renewable power purchasing. For instance, for biomass electricity generation long-term agreements have lifespans of 15 years. 7 Overall, auctions have resulted in 31 GW of contracting new capacity, 40 per cent of which is conventional hydro, 20 per cent of which is non-conventional renewables, and 40 per cent of which is conventional fossil fuels, mostly gas [41]. WWF | Green Energy Leaders: Latin America’s Top Countries In Renewable Energy | Page 19PDF Image | Latin Americas Top Countries In Renewable Energy
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