In , considering only plants already contracted for, the respective installed capacity will be a little over 8, MW. And with the plants, world manufacturers of wind turbines are establishing production facilities in the country. Despite the absolute increase of 22 GW within this time span, the share of hydropower capacity will fall from 75 percent to 67 percent, while the share of renewables, such as wind farms, biomass-powered thermal plants and small hydropower plants SHP , will double in ten years Figure 3.
Wind power capacity will stand out, increasing its share from 1 to 7 percent in Thus, the share of renewable sources will remain at around percent by the end of the decade. It is noteworthy that 71 percent of this contracted power capacity refers to renewable energy sources hydro and alternative sources. By , all electricity needs are contracted, and the existing surplus would, for instance, enable the country to grow at an average rate of 7 percent a year in the period. This prioritization of hydroelectric plants and renewable energy sources within the planning horizon depends especially on obtaining Previous Environmental Licenses required for the planned power plants to participate in power purchase auctions for new projects, as established by law.
Electricity transmission. The length of the National Grid of , km in will increase to approximately , km in This means that the equivalent to almost half of the current transmission system will be built in the next ten years. Much of this expansion will come with large transmission trunks associated with the interconnection of plants in the North Region - including Jirau and Santo Antonio on the Madeira River, and Belo Monte - with the rest of the country. It is also noteworthy the kV transmission line between Manaus and Boa Vista, that will supply the latter and, in the future will also transport energy generated by the Rio Branco basin hydropower plants in the state of Roraima.
Brazil has played an increasingly relevant role in the oil and natural gas industry, as a result of successful deep-water offshore exploration and production. Also to be celebrated for its historical and economic relevance to the country was the achievement, in , of the longed-for self-sufficiency in oil, which in led Brazil to the condition of international exporter, even without the recent and promising contribution of pre-salt Figure 4.
Pre-salt oil prospects are very promising. Worldwide experience has shown that the existence of this natural resource per se does not enable ensuring that the society that owns it will enjoy or appropriate the benefits it may generate. Fortunately, today we have much more favorable objective conditions to prevent that from happening in Brazil.
The recent discoveries of pre-salt reserves were due to the technical skills of Petrobras in investigating our underground wealth, and we are sure that Brazilians will count on such skills in the implementation of production systems for oil and natural gas from the new fields. Moreover, the planned exploration of pre-salt reserves can leverage the socioeconomic development of the entire country, thus favoring the establishment of a productive domestic framework capable of surviving the exhaustion of domestic oil reserves.
Besides being a relevant producer, Brazil will become a major player in the international oil scenario. In the downstream sector, investments are needed in the expansion and adaptation of the national refinery capacity as well as in the enhancement of the oil and derivatives logistics infrastructure. The main focus on refining aims to meet the growing demand for middle distillates particularly diesel and the increasingly stricter requirements concerning the quality of derivatives especially lower sulfur content in diesel and gasoline.
These investments in refining will allow Brazil to overcome the current external fuel dependency such as diesel and improve the quality of fuels sold in the domestic market, for the benefit of the Brazilian society.
Ethanol is made from biomass
Improving the quality of fuels will also adjust them to the specification standards required by the international market, thus leading to more profitable fuel exports. Moreover, the country will be a net exporter throughout the period, with an exported volume of nearly half a million cubic meters per day approximately 3 million barrels per day in , especially from pre-salt oil fields. With these new facilities, the nominal refining capacity will increase from the current 2 million barrels per day to 3. Investments in logistics infrastructure pipelines, ships, terminals, etc.
Technological progress, however, has not been restricted to energy supply. Flex-fuel vehicles, whose engines run on any proportion of ethanol and gasoline, have become an irreversible reality. Acceptance of these vehicles by Brazilian consumers was such that a mere eight years after their introduction in , the number of flex-fuel vehicles already accounts for 49 percent of the light-duty vehicle fleet, i. This share is expected to reach 78 percent in For the next ten years, the demand for ethanol in the Brazilian market will continue to grow, due to the significant expansion of the domestic fleet of flex-fuel vehicles and the high competitiveness of hydrated ethanol prices in relation to gasoline, despite its restricted supply in the short-term.
In the international market, Brazil should continue to maintain its leadership position in ethanol sales. In the medium term, increased supply will meet the demand for ethanol through the expansion of sugarcane plantations, the expansion of ethanol production plants, as well as the use of new technologies, which will improve the efficiency of the entire ethanol production chain. Under this point of view, projects aimed to facilitate and reduce ethanol transportation and storage costs have also been planned. Private initiative participates from the moment the risks and uncertainties of technological development can be identified.
The author takes as an example the technologies touchscreen and GPS that gave support to the development and commercialization of iPhone and iPad and that are the result of many years of research financed by the State with the Department of Defense of the United States. In this sense, the arguments put forward put the State as an active participant in the process of technological development necessary for the adoption of new products and new processes and also for the creation of new markets.
This construction has in the interaction between public and private action formatted in public policies the ways to reduce the risks and uncertainties tied to new markets and new technologies. The arguments of Mazzucatto emphasize the importance of state participation in technological development, in encouraging the formation of new markets. The public incentive to development is permeated by the view that the private initiative seeks to invest in businesses with risk and uncertainty foreseeable.
These conditions are not always measurable in new technologies and markets. The difficulty of analyzing new investment scenarios for private enterprise is partly amortized by public action through policies and programs that support specific technologies and markets.
9. Tax Law and the Oil, Natural Gas and Biofuel Industries in Brazil
The formatting of structured public policies in support mechanisms and incentives to new technologies and markets is present in the architecture of the PNPB. Thus, the methodology adopted initially seeks to explore the instruments and results achieved with the PNPB, and then, to guide the case study and to identify how the private initiative has internalized the incentives and objectives of the program. The descriptive analysis of the program was conducted from two stages of research. The first met and analyzed information contained in laws and decrees that regulate the activities and objectives of the PNPB.
The information collected and analyzed in the two stages of research were complemented with results of recent technical-scientific studies that dealt with the PNPB. The two research networks selected were those dedicated to research with jatropha. The choice of these nets is due to the fact that jatropha is placed as a rustic oleaginous and placed as promising to be produced by family farming in the Northeast Region of Brazil. To apprehend this and previous investments in research, still lacking knowledge about its genetics and breeding, production, harvesting and processing techniques, according to Martins The interviews were conducted from November to March , through a script with 12 open questions organized in two categories: network operation and results achieved.
The goal of the program is to implement production and the use of biodiesel in Brazil in a sustainable manner, promoting social inclusion, guaranteeing competitive prices, quality, supply and production from different sources of oilseeds in diverse regions. To achieve its objective, this public policy brings together various instruments and organizations that accommodate a set of incentives and rules for production, commercialization and support for technological development.
The commercialization, in a regulated market, is supported by a system of auctions of purchases and quality control, with the participation of the ANP in the organization of the auctions and edition of the technical specifications, and of Petrobras in the control of stock executed through negotiations involving the Purchase of biodiesel in the ANP auctions and the transfer to the diesel distributors that serve the national diesel market.
The financial and tax incentives and the rules of the auctions are linked to the Social Fuel Seal, an identification component granted to the biodiesel producer who acquires a minimum percentage of raw material from family farmers included in the Programa Nacional de Fortalecimento da Agricultura Familiar PRONAF , executed by the MDA. This instrument for the promotion of social inclusion and regional development, with emphasis on the Northeast Region and on the oil-producing area produced by family agriculture, castor bean, as Azevedo points out, was widely publicized in the media and its links and objectives built expectations in the solution of historical problems of this Brazilian region.
The debates about the regional distribution and its relations with the raw materials for biodiesel production intertwine with the questions about the participation of the biodiesel plants. The results built in front of the proposed objectives open space for questions about the scope of institutional arrangements formatted in the PNPB and its limitations to promote development in interaction with private initiative and connected to the needs of society Pedroti, This discussion is reinforced when the evolution of the production is observed, accompanying the increase of the mixing percentages and the consumption of diesel.
Brazilian biodiesel production jumps from m3 in to 3. In this sense, we have the success of PNPB in the proposal to include biodiesel in the Brazilian energy matrix. But, also, the realization that this capacity did not extend to the promotion of the innovations necessary to reach its objectives of social inclusion and regional development, especially of the Northeast Region of Brazil. The implementation of the PNPB and its development, as elaborated in the previous section, built a scenario based on the need for agricultural technological development in oilseeds or raw materials alternative to soy, in order to achieve the objectives of social inclusion and regional development.
To present and discuss the results achieved, this section was structured in two subsections. The history of one of the main Brazilian companies is permeated by economic aspects inherent in the main market in which it operates - the oil market. But, also, for political and driving issues of the Brazilian economy that influence the choices and paths traced by Petrobras over more than 60 years.
The creation of Petrobras takes place amidst polarized discussions that addressed, in particular, the issue of the monopoly on oil. At that time, the private initiatives in the construction and operation of refineries were being absorbed by the state as its knowledge was improved in a broad process of learning from oil exploration to refining and distribution of derivatives.
The capacity developed by the company has been expanded with emphasis on investments in oil prospecting and exploration in offshore fields.
Tax Law and the Oil, Natural Gas and Biofuel Industries in Brazil |
In the last years the movement of Petrobras involves the generation of electricity, discussions and worldwide actions around sustainable development, biofuels and several other applications for biomass. In this context, the Petrobras System is consolidated with new subsidiaries and expansion of activities, with the production of ethanol, sugar, bioelectricity and biodiesel. Also, it is worth highlighting the Brazilian euphoria with the possibility of the country assuming a prominent position in the world production of biofuels.
A located in Candeias, Bahia, where Petrobras operates the production terminal for the Refinaria Mataripe. This move of the company established the production structure for biodiesel, from three own plants located in the Northeastern Region and the semi-arid region of Brazil, in addition to two plants operated in partnership in the South Region. And an for technological management and another that opens up research on bioproducts. In the bioproducts research network, technologies are being developed in evaluation of glycerine injection for advanced oil recovery and tests for the production of second generation ethanol from sugarcane bagasse.
Also in evaluation of new methodologies for emissions measurement and evaluation of the potential of different types of vegetation in CO 2 sequestration.
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The research network on bioproducts also aggregates studies for the production of microalgae in hypersaline waters, production of lubricant from castor biodiesel biofuel , production of polystyrene from soybean oil, production of gasoline and diesel oil from of bio-oil of wood.
These projects are those linked to agreements with public agricultural research centers, allocated to networks 6, 8 and 9, as shown in Table 1.
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