table_1Research and Development Financing in the Renewable Energy Industry in Brazil Muriel de Oliveira Gavira1,2 1School of Applied Sciences, University of Campinas, Brazil 2DepartmentFaculty of Sciences, University of Lisbon, Portugal e-mail: murielgavira@gmail.comResearch and Development Financing in the Renewable Energy Industry in Braziltable_2ABSTRACTKEYWORDSINTRODUCTIONtable_3one of the leaders in the use of biomass to generate energy (electricity an transportation).RENEWABLE ENERGY IN BRAZILtable_4In addition, in Figure 2 one can see that the participation of new renewable sources, excluding hydropower, and their installed capacity is still very small considering the country’s potential. Moreover, fossil fuel thermal energy has been growing faster than the renewable.table_5thermal power plans and their production increase from 2,178×103 tep (toe) in 2000 to 6,845×103 tep (toe) in 2012 [4].Table 1. Installed Capacity of Electric Generation [MW] in 2010table_6is particularly relevant. But, to tap such a potential, the country needs to develop more sustainable ways of growing sugar-cane and producing ethanol.table_7POLICY INSTRUMENTS FOSTERING RENEWABLE ENERGY IN BRAZILtable_8Research and development (R&D) policies aim to reduce the cost and risk of those activities in order to improve the quantity and quality of the innovation efforts in the country. Regarding public support, the government might offer support instruments such as:Direct public research and development financingtable_9Table 2. Main sources of public R&D financing to the renewable energy industry in Brazil Type Institutions National funding Federal Funding agencies Science and technology agencies from the Ministry of Science, Technology and Innovation (MCTI) such as National Innovation Agency (FINEP); National Council for Scientific and Technological Development (CNPq). Regional development agencies such as Amazon Development Agency (Sudam) and The Superintendence for the Development of the Northeast (Sudene). Regulatory agencies: The Brazilian Electricity Regulatory Agency (Aneel); National Agency of Petroleum, Natural Gas and Biofuels (ANP); etc. Federal program Technological support program for exports (Progex), Constitutional Fund for Financing the Centre West Region; etc. State programs State funding to support research such as Fundes (RJ), Fomento (GO), and other research funds. Research Foundations Banco do Brasil Foundation (FBB); states foundations such as São Paulo Research Foundation (Fapesp); Research and Development Foundation (FADESP); Foundation to Support Research and Extension (Fapex); etc. Banks Banco do Brasil; Brazilian Social and Economic Development Bank (BNDES); etc. International funding Programs Global Environment Facility, United Nations Environment Programme (UNEP). Banks The Inter-American Development Bank (IADB or BID), World Bank, The International Bank for Reconstruction and Development (IBRD). Source: Adapted from [16, 17]Table 2. Main sources of public R&D financing to the renewable energy industry in Braziltable_10Table 3. Main support programs to the clean/renewable energy industry in Brazil Program Management Institution Type of support Implanted Specific to the energy industry Main objective PROINFA Eletrobras Guaranteed contracts of energy purchase 2002 Yes, biomass, wind and small hydro Increase the share of renewable energy in the National grid from independent power producers CT- ENERG National Innovation Agency (FINEP) R&D and innovation projects financing 2001 Renewable power generation and Efficient energy use Energy security and diversification, lower costs, increase quality of services, and increase the competitiveness of domestic technology. InovaEnergia Brazilian Social and Economic Development Bank (BNDES) R&D financing: several instruments such as long- term credit with reduced interest rates; non-reimbursed resources. 2013 Yes, to equipment suppliers to the renewable energy industry. Support Brazilian companies in the global technological develop- ment and production of the photovoltaic, thermo solar and wind power technologies. Law 9991/2000 The Brazilian Electricity Regulatory Agency (Aneel) Mandatory investments in renewable energy and energy efficiency 2000 Yes, renewable energy and energy efficiency To promote constant innovation to overcome the technological challenges of the power industry.Table 3. Main support programs to the clean/renewable energy industry in Braziltable_11To participate the companies wait for the calls for projects and them present the proposals, then Finep evaluate the proposals. The call pays expenses such as R&D infrastructure, services, material, equipment, scholarships, etc.Figure 5. FINEP’s disbursements, by program (in local currency - BRL millions), 1999-2010 [19]CONCLUSIONtable_12Moreover, since the technological costs and risks in the energy industry are very high, the government should support and incentive the sector to develop itself in a more competitive speed than the present one.Moreover, since the technological costs and risks in the energy industry are very high, the government should support and incentive the sector to develop itself in a more competitive speed than the present one.REFERENCEStable_13http://graphics.eiu.com/files/ad_pdfs/RnD_GLOBILISATION_WHITEPAPER.pdf , [Accessed:04-April-12]http://graphics.eiu.com/files/ad_pdfs/RnD_GLOBILISATION_WHITEPAPER.pdf , [Accessed:04-April-12]nanLETTER • OPEN ACCESSYou may also likeThe power of light: socio-economic and environmental implications of a rural electrification program in BrazilThe power of light: socio-economic and environmental implications of a rural electrification program in BrazilAbstract1. Introduction1. Introduction1. Introduction2.1. The national program of universalization of2.1. The national program of universalization of access and use of electricity—LpT (Light for all)^emu#z 7 ? (0x^2<D,  />ntable_1Research and Development Financing in the Renewable Energy Industry in Brazil Muriel de Oliveira Gavira1,2 1School of Applied Sciences, University of Campinas, Brazil 2DepartmentFaculty of Sciences, University of Lisbon, Portugal e-mail: murielgavira@gmail.comResearch and Development Financing in the Renewable Energy Industry in Brazil Muriel de Oliveira Gavira1,2 1School of Applied Sciences, University of Campinas, Brazil 2DepartmentFaculty of Sciences, University of Lisbon, Portugal e-mail: murielgavira@gmail.comtable_2ABSTRACT In the last decades, the Brazilian government has put many public policies in place in order to create a favourable environment to promote energy efficiency and clean energy. In this paper we discuss the use of research and development financing support by the clean energy industry in Brazil. To do so, we carried out an empirical research analysing secondary data from legislation, literature case studies, and public and industry reports in order to determine if the companies of the clean energy industry have public financial support to research and development. Our ongoing research shows that, despite incentives to stimulate the dissemination of clean energy, the participation of some of the clean energy is very small (especially solar). We believe that the contributions of this study will assist policy makers, and the whole industry, to improve clean energy research and development investments in Brazil.KEYWORDS Clean energy, Public policy, Energy policy, Innovation, Sustainable development.INTRODUCTION The energy industry has several challenges to face in the next years. The demand for energy is heavily growing in the last years, as a consequence, its exploration, production and distribution costs. Other important challenges are energy security and availability, energy dependency, sustainable development, social justice, etc. Governments frequently put in place public policies to help society to face such important issues [1]. One way to face many of those challenges is investing in energy efficiency and in clean and renewable energy. These policies deal, mainly, with the supply side of the problem and are able to give diversity of sources reducing energy foreign dependency, energy inequality, harmful environment impacts, and increasing social development [2-5]. Between the instruments of energy policy there are: research and development (R&D), financing business, tax incentives, voluntary agreements, information dissemination, market reforms, pricing and taxation, consumer awareness, human resources education and training, standard and regulations, and others. In the last decades, the Brazilian government has put many public policies in place in order to create a favourable environment and to promote energy efficiency and clean energy. Currently, the public sector in Brazil has been directing the resources to the creation of a favourable environment for energy efficiency and renewable energy initiatives. The biggest and most successful Brazilian policy regarding the renewable energy industry was the PROALCOOL (Alcohol National Program). As a result, Brazil is todaytable_3one of the leaders in the use of biomass to generate energy (electricity an transportation). ne of the leaders in the use of biomass to generate energy (electricity and ansportation). in the use of biomass to generate energy (electricity and p Apart from the sugarcane industry, the government has put in place policies and incentives to clean energy sources such as solar, wind, and biofuel. As Brazilian government also intends to promote the technological development of the country, these incentives include financial support to research and development (R&D), such as the Program of Incentives for Alternative Electricity Sources (PROINFA) and the Technological Development Program for Biodiesel. g p g In the case of R&D policy, governments can support those activities through financing incentives, governmental purchase of high technological goods and services, public research, rights of intellectual propriety, and human resources for innovation. To meet the energy challenges we need to develop new technologies and to innovate in ways of efficiently use of the present ones. Therefore, investing in R&D for new and improved clean energy systems is fundamental to the adoption of clean energy technologies. In the energy industry, is particularly relevant to invest in energy efficiency, computing, information technologies, grid management, and low-carbon technologies and process. Also very important is to expand financing instruments to basic science in the areas of fuel cells, hydrogen, advanced renewable energy, modern biofuels and energy storage [6]. In this paper we discuss the results of an ongoing research about R&D financing to renewable energy projects in Brazil and to do so, we carried out an empirical research analysing secondary data from legislation, literature case studies, and public and industry reports in order to determine if the companies of the renewable energy industry, especially new renewable power generation, have benefit from governmental financial support to R&D projects.RENEWABLE ENERGY IN BRAZIL It is important to know the main indicators of the renewable energy industry in Brazil in order to understand where are the technological and productive gaps in the sector. According to IBGE [7] 191 million people lived in Brazil in 2010 and 98% of them had access to the power grid (2008 data). With a population of this size and the exhaustion of the hydropower potential, it is crucial to seek for new sources of energy in Brazil and to promote energy efficiency and distributed forms of electricity generation. Brazil relies heavily on clean energy sources: about 46% of the country’s energy comes from renewable sources, and with the main source of power energy is being hydroelectric power. Additionally, as stated before, because Brazil invested early in ethanol as a result of government incentives put in place in the mid-1970s, today, it is a world leader in ethanol exports and in the use of biomass to produce electricity in the industrial sector [8]. According to EPE [4] clean energy sources (wind, biomass, small hydro, etc.) will increase their participation in the electricity sector in Brazil from 47.5% in 2010 to 46.3% in 2020. In 2010, 19.3% of the primary energy production came from sugarcane products, 13.7% from hydropower, 10.2% from wood, and 4.3% from other renewable sources. Despite the increase of clean energy generation in Brazil, especially biomass and wind (Figures 1 and 2, and Table 1), the proportion of renewable sources in the total electricity installed capacity has been falling in the last 12 years. Comparing to other countries, Brazil still have a large share of renewable sources (including hydropower) of electricity; however countries such as Germany, France and the United States have increased the participation of renewable sources in their grid.table_4In addition, in Figure 2 one can see that the participation of new renewable sources, excluding hydropower, and their installed capacity is still very small considering the country’s potential. Moreover, fossil fuel thermal energy has been growing faster than the renewable.table_5thermal power plans and their production increase from 2,178×103 tep (toe) in 2000 to 6,845×103 tep (toe) in 2012 [4]. ermal power plans and their production increase from 2,178×103 tep (toe) in 2000 to 845×103 tep (toe) in 2012 [4]. Wind generation has increasing participation in the last years (from 1 GWh in 2000 to 2.176 GWh in 2010) but the wind farms are generally in the Northeast, far from the main consumer centres, due to the climate characteristics and distance from large urban areas. Table 1. Installed Capacity of Electric Generation [MW] in 2010 Region/Sources HYDRO THERMAL WIND SP APE Total SP APE Total SP APE Total Brazil 77,318 3,385 80,703 17,548 12,141 29,689 926 2 928 North 10,866 29 10,895 3,029 365 3,394 Northeast 10,776 167 10,943 3,967 1,953 5,920 722 2 724 Southeast 22,661 1,892 24,553 6,034 7,662 13,695 29 29 - São Paulo 10,442 542 10,984 1,145 4,714 5,859 South 22,042 1,143 23,186 3,178 1,006 4,185 175 175 Centre-West 10,972 154 11,126 1,340 1,156 2,496 Notes: SP - Public Service. APE - Self-Producers (excluding the partnership between hydroelectric plants with Public Service concessionaries as: Igarapava, Canoas I and II, Funil, Porto Estrela, Machadinho and others). S El b d i h d f [4]Table 1. Installed Capacity of Electric Generation [MW] in 2010 ) Source: Elaborated with data from [4] Source: Elaborated with data from [4] Other characteristics of the Brazilian Electricity System are [5, 10, 11]:  The distribution of power is uneven: the access is smaller more limited in the North and Northeast regions; but also these regions have a much smaller population;  The privatization in the sector started in the mid 1990’s;  The transmission network is integrated (National Integrated System in the states of South, Southeast and Northeast of Brazil). This integrated system cover about 98% of the electricity demand of Brazil and is dominated by hydropower plants with large reservoirs. There are also isolated systems in the North of Brazil, mostly thermal;  In 2010 there were 98,648.32 km of transmission lines in the National Integrate  In 2010 there were 98,648.32 km of transmission lines in the National Integrated System (an increase of 3% compared to 2009);  Power generation and transmission are, for the most part, State controlled. Around 60% of the power distribution (installed capacity) is managed by private companies. Figure 3 shows that the generation is dominated by public utility power plants. In the world, Brazil is number four in renewable power capacity when hydropower is included [11], and number five in terms of annual capacity increment. Such an increment is largely due to ethanol and biodiesel products (Brazil is number two in biomass power), with wind and solar PV power still being incipient. Brazil is developing new projects related to wind power, solar power, and tidal and wave energy, in order to explore its largely untapped potential [4]. The expansion of the power generation from cleaner sources is promising for Brazil, especially considering that the country can benefit from carbon trading with countries with emission goals. The case of ethanol, which is already exported to several countries,table_6is particularly relevant. But, to tap such a potential, the country needs to develop more sustainable ways of growing sugar-cane and producing ethanol.table_7POLICY INSTRUMENTS FOSTERING RENEWABLE ENERGY IN BRAZIL Market and technological uncertainties to which clean energy investments are subject may be mitigated by a good institutional and regulatory environment. Well-planned policies and support mechanisms help actors to manage risks and opportunities in the energy industry. In this context, R&D has an important role in promoting renewable electricity since it might result in new and improved innovation to the industry. Enzensberger et al. [10] divide the policy instruments fostering renewable energy is two larger groups: legislative measures and non-legislative measures. We adapted Enzensberger et al.’s typology to consider R&D financing (Figure 4) and list some examples of instruments:  Demand and control;  Demand and control; o R&D: mandatory investments in R&D (utilities in Brazil must invest 0.5% of their Net revenue in R&D – Lei nº 9.991/2000); o Other instruments: mandatory investments in general, shut-downs, mandatory fuel off-take. o R&D: mandatory investments in R&D (utilities in Brazil must invest 0.5% of their Net revenue in R&D – Lei nº 9.991/2000); o Other instruments: mandatory investments in general, shut-downs, mandatory fuel off-take.  Construction incentives;  Construction incentives; o R&D Financing: low or no interested financing; o Other instruments: accelerated depreciation, subsidies, tax deduction and low interested loans.  Construction incentives; o R&D Financing: low or no interested financing; o Other instruments: accelerated depreciation sub o R&D Financing: low or no interested financing; o Other instruments: accelerated depreciation, subsidies, tax deduction and low interested loans.  Production incentives: fixed feed-in tariffs, tax exemption, actions, etc.;  Demand-pull: renewable portfolio standard with certificate trading, tax deductions for purchase; public purchase of technology and energy;  Voluntary: certification, self-goal, etc.;  Informative or administrative: improvement of administrative process; investor advising; publicity; resource mapping;  R&D: investments in R&D for energy efficiency and renewable energy.table_8Research and development (R&D) policies aim to reduce the cost and risk of those activities in order to improve the quantity and quality of the innovation efforts in the country. Regarding public support, the government might offer support instruments such as:  Tax incentives such as discounts on income taxes based on the amount of R&D investments;  Taxation over carbon intensive energy sources; Direct public financing of R&D projects;  Financing R&D public institutes that might involve companies in their projects;  Public purchase of technology and electricity;  Others: venture capital, public-private partnerships, etc. In this paper we focus only in direct public R&D financing from market-based (see Figure 4) to the renewable energy industry in Brazil. We do not intend to analyse the R&D investments of the utilities companies in Brazil. Moreover, the financial incentives to R&D can be classified according to its topic, that is, resources (input), such as labour, machinery and equipment, infrastructure (buildings, information networks, etc.), overhead costs, technological services, materials, etc. Also, it includes incentives that support project development, and output goods and knowledge (licensing process, knowledge management, etc.) [13]. In this paper we focus in all these topics.Direct public research and development financing Only in the 1990’s Brazil put in place better and reliable instruments of public R&D financing for the private sector. Since then one could see the expansion and diversification of the funding in order to ensure a better resources allocation. However, only part of this goal was, in fact, achieved [11, 13] and Bastos [1]. In Table 2 we present the main sources of public financing to the energy industry in Brazil. Page 213table_9Table 2. Main sources of public R&D financing to the renewable energy industry in Brazil Type Institutions National funding Federal Funding agencies Science and technology agencies from the Ministry of Science, Technology and Innovation (MCTI) such as National Innovation Agency (FINEP); National Council for Scientific and Technological Development (CNPq). Regional development agencies such as Amazon Development Agency (Sudam) and The Superintendence for the Development of the Northeast (Sudene). Regulatory agencies: The Brazilian Electricity Regulatory Agency (Aneel); National Agency of Petroleum, Natural Gas and Biofuels (ANP); etc. Federal program Technological support program for exports (Progex), Constitutional Fund for Financing the Centre West Region; etc. State programs State funding to support research such as Fundes (RJ), Fomento (GO), and other research funds. Research Foundations Banco do Brasil Foundation (FBB); states foundations such as São Paulo Research Foundation (Fapesp); Research and Development Foundation (FADESP); Foundation to Support Research and Extension (Fapex); etc. Banks Banco do Brasil; Brazilian Social and Economic Development Bank (BNDES); etc. International funding Programs Global Environment Facility, United Nations Environment Programme (UNEP). Banks The Inter-American Development Bank (IADB or BID), World Bank, The International Bank for Reconstruction and Development (IBRD). Source: Adapted from [16, 17]Table 2. Main sources of public R&D financing to the renewable energy industry in Brazil In Table 3 we present the main support to the clean energy industry in Brazil. One can note a variety of different institutions managing the support programs with similar objectives but different types of support instruments. In this way, it is important to have a central institution to guarantee that those instruments work together for the development and diffusion of relevant innovations in the clean energy industry. gy y In this paper we focused the programs of one its institution: The National Innovation Agency (FINEP). Finep is directly responsible for the financing of R&D project in Brazil and it is the main source of R&D financing in the last years [18, 7]. This institution issues loans and grants to public and private institutions in Brazil. The grants come from The National Fund for Scientific and Technological Development (FNDCT). It is also is responsible for managing the most part of the Sector Funds of Science, Technology and Innovation and for programs such as [2, 8]:  Long-term credit with reduced interest rates;  Concession of economic subsidy for the R&D activity;  Fiscal incentives: information law, innovation law, etc.;  Non-reimbursed resources;  Scholarships; p  Programs to support the interaction among universities, public research institutions and companies;  Programs to support the interaction among universities, public research institutions and companies;  Develop the venture capital segment in Brazil (project "inovar”).table_10Table 3. Main support programs to the clean/renewable energy industry in Brazil Program Management Institution Type of support Implanted Specific to the energy industry Main objective PROINFA Eletrobras Guaranteed contracts of energy purchase 2002 Yes, biomass, wind and small hydro Increase the share of renewable energy in the National grid from independent power producers CT- ENERG National Innovation Agency (FINEP) R&D and innovation projects financing 2001 Renewable power generation and Efficient energy use Energy security and diversification, lower costs, increase quality of services, and increase the competitiveness of domestic technology. InovaEnergia Brazilian Social and Economic Development Bank (BNDES) R&D financing: several instruments such as long- term credit with reduced interest rates; non-reimbursed resources. 2013 Yes, to equipment suppliers to the renewable energy industry. Support Brazilian companies in the global technological develop- ment and production of the photovoltaic, thermo solar and wind power technologies. Law 9991/2000 The Brazilian Electricity Regulatory Agency (Aneel) Mandatory investments in renewable energy and energy efficiency 2000 Yes, renewable energy and energy efficiency To promote constant innovation to overcome the technological challenges of the power industry.Table 3. Main support programs to the clean/renewable energy industry in Brazil Finep’s objective is to support the creation and development of:  Technology-based businesses that emerge from research centres and universities;  High-tech spin-offs from large businesses;  Technology-based business incubators;  Of innovative Clusters;  Of private research Centres. In Figure 5 one can see a significant increase in Finep’s disbursements in the last year The Brazilian science and technology sector funds aim to expand and ensure the constancy of the R&D financing in Brazil and were created to complement and incentive the R&D development in strategic sectors to the county, such as energy, oil, Amazon, agribusiness, biotechnology, etc. To this research, the most important funds are: Energy, Infrastructure, and “Verde Amarelo”. Page 215table_11To participate the companies wait for the calls for projects and them present the proposals, then Finep evaluate the proposals. The call pays expenses such as R&D infrastructure, services, material, equipment, scholarships, etc.Figure 5. FINEP’s disbursements, by program (in local currency - BRL millions), 1999-2010 [19] The funds Verde Amarelo (FVA) and Infrastructure (CT-Infra) are cross sector and the Energy one (CT-Energ) is specific to the electricity industry. In recent years Brazil has put in place important initiatives to improve funding opportunities for R&D projects. Major challenges still are the integration between the public funding and develop research and the private sectors and the stability and constancy of funding programs. The Brazilian financial supports have approximated to those found in other countries, especially OECD countries [2]. These supports have been intensified not only in financing, institutional and incentives resources; but also, in the integration between industrial and economic policies. Those actions aim to increase and improve the integration between the instruments and actors, the knowledge diffusion, the innovation culture, and the competitive advantage derived from technological innovation. Brazil is far of its goals, once there is still a centralization of recourses and decision making in few institutions, especially FINEP (Financiadora de Estudos e Projetos - Research and Projects Financing) and BNDES (Banco Nacional de Desenvolvimento Econômico e Social - Brazilian Development Bank). Another issue of considerable importance is the consistency and stability of funding and incentives. That has not happened in recent years because of the resources subordination to national tax problems [2, 19].CONCLUSION Well-planned policies and institutional mechanisms can help actors to address risks and exploit opportunities. Indeed, market uncertainties and technological risks in sustainable energy investments are very high, giving to the regulatory environment an essential role in support of multilevel initiatives.table_12Moreover, since the technological costs and risks in the energy industry are very high, the government should support and incentive the sector to develop itself in a more competitive speed than the present one. In the last years, the Brazilian government has invested in the creation of policies and incentives aimed at energy efficiency and at other clean energy sources such as solar, wind, and biofuel. Countries have also put into place Science and Technology (S&T) Policies to support Education and Research and Development activities. In Brazil, several initiatives are in place, such as the Program of Incentives for Alternative Electricity Sources (PROINFA) and the Technological Development Program for Biodiesel and the Program for the Hydrogen Economy. g y g y Considering public financial support to innovate, in recent years Brazil has taken important initiatives to improve funding opportunities for projects to research, development and innovation. The main challenge lies on the integration between private (firms) and knowledge generation sectors (universities etc.) and on the constancy financing instruments. Another issue of considerable importance is the consistency and stability of funding and incentives. That has not happened in recent years because of the resources subordination to national budget problems. Our ongoing research shows that, despite incentives to stimulate the dissemination of clean energy, the participation of some of the clean energy is very small (especially solar). In addition, the financial resources that the energy industry use to research and develop new clean technologies is still scarce, especially considering the potential of Brazil. However, that amount has increased in the last years, with focus on energy efficiency and hybrid vehicles the country needs to make a better effort in placing mechanisms for awareness, support (especially financial) and promotion of R&D in the renewable industry. It is still not clear if those policies bring benefits to the country, such as energy security, diversification of the power grid, reduction of foreign oil dependency, and technological development. It is evident that for the clean energy industry to develop, the country needs to invest more in innovation and in mechanisms of awareness, and support.The fact that the Brazilian energy grid is considered one of the cleanest in the world may cause the government to accommodate and lose sight of a bigger picture that embeds great opportunities for institutional and technological improvements towards a sustainable energy industry. We believe that the contributions of this study will assist policy makers, and the whole sector, to improve clean energy research and development investments in Brazil. The next step of our research is to study the results of research and development founding in Brazil from Finep and BNDES especially from the Sectors Funds and the Program of Incentives for Alternative Electricity Sources (PROINFA).REFERENCES 1. Bastos, V. D., Public funds for science and technology (in Portuguese), Revista do BNDES, Vol. 10, no. 20, pp. 229-260, 2003. 1. Bastos, V. D., Public funds for science and technology (in Portuguese), Revista d BNDES, Vol. 10, no. 20, pp. 229-260, 2003. 2. Corder, S., Financing and incentives to the innovation system in Brazil: current situation and perspectives, Ph.D thesis, UNICAMP, Instituto de Geociências, Departamento de Política Científica e Tecnológica, Campinas, ago. 2004. Retrieved from: http://www.bibliotecadigital.unicamp.br/document/?code=vtls000349489, [Accessed: 12-Dec-09], (in Portuguese) 3. Economist Intelligence Unit - EIU, Scattering the seeds of invention: the globalisation of research and development, 2004. Retrieved from:table_13http://graphics.eiu.com/files/ad_pdfs/RnD_GLOBILISATION_WHITEPAPER.pdf , [Accessed:04-April-12] 4. Energy Research Company - EPE (Brasil), Brazilian Energy Balance Year 2012, Ri de Janeiro, 2013. 5. International Energy Agency – IEA, Renewables in global energy supply: an IEA fact sheet, International Energy Agency, 2007. 6. Energy Research Company - EPE (Brasil), National Energy Plan 2020, Rio d Janeiro, 2011. . The Brazilian Institute of Geography and Statistics - IBGE, 2010 Population Census, IBGE, 2011. 8. Alvarenga, G. V., Pianto, D. M. and Araújo, B. C., Impacts of the Brazilian science and technology sector funds on industrial firms’ R&D inputs and outputs: new perspectives using a dose-response function. In: Proceedings, EncontroNacional de Economia – ANPEC, Porto de Galinhas (PE): Anpec, 11-14 Dec, 20 12. Retrieved fromhttp://www.anpec.org.br/encontro/2012/inscricao/files_I/i8-5fe1cb9e5d777ea4 0cd1a965ecfba0b8.pdf, [Accessed: 13-Sep-13] 9. U.S. Energy Information Administration – EIA. International Energy Statistic Retrieved from: http://www.eia.gov/countries/, [Accessed: 28-Feb-14] 10. Enzensberger, N., Wietschel, M., and Rentz, O., Policy instruments fostering wind energy projects-a multi-perspective evaluation approach, Energy Policy, Vol. 30, no. 9, pp. 793-801, 2002., http://dx.doi.org/10.1016/S0301-4215(01)00139-2 11. REN21, Renewables 2011 Global Status Report, Paris, REN21 Secretariat, 2011. Retrieved from: http://www.map.ren21.net/GSR/GSR2012.pdf [Accessed: 06-Nov-12] 12. Heugens, P. P. M. A. R. and Lander, M., Structure! Agency! (and other quarrels): meta-analyzing institutional theories of organization, Academy of Management Journal, Vol. 52, No. 1, pp 61-85, 2009., http://dx.doi.org/10.5465/AMJ.2009.36461835 pp 13. Lundvall, B-Å., National Innovation Systems: towards a theory of innovation and interactive learning, Pinter, London, 1992. 14. Nelson, R., National Innovation Systems: a comparative analysis, Oxford University Press, New York/Oxford, 1993. 15. Organisation for Economic Co-operation and Development - OECD, Education at a Glance 2012: OECD Indicators, OECD Publishing, 2012. 16. Organisation for Economic Co-operation and Development - OECD, World Energy Outlook 2011 Fact Sheet: global energy trends, 2011. 17. Pereira, N. M., Fundos setoriais: avaliação das estratégias de implementação e gestão, White paper n. 1.136, Brasília, 2005. 18. Pereira, N. M., Sector Funds: evaluation of implementation and management strategies (in Portuguese), White paper n. 1.136, Brasília, 2005. Retrieved from: http://www.ipea.gov.br/pub/ td/2005/td_1136.pdf, [Accessed: 15-Feb-2007] 19. Pereira, N. M., and Simone P. F.Experiences to support sector technological innovation (in Portuguese), Journal of Technology Management & Innovation, Vol. 1, No. 3, pp 74-80, 2006. Paper submitted: 06.02.2014 Paper revised: 02.03.2014 Paper accepted: 02.03.2014 Page 218nanLETTER • OPEN ACCESSYou may also like You may also like The universality class of random searches in critically scarce environments C. L. Faustino, M. L. Lyra, E. P. Raposo et al. - Can collective searches profit from Lévy walk strategies? M C Santos, E P Raposo, G M Viswanathan et al. - Optimal random searches of revisitable targets: Crossover from superdiffusive to ballistic random walks M. C. Santos, E. P. Raposo, G. M. Viswanathan et al. -The power of light: socio-economic and environmental implications of a rural electrification program in Brazil The universality class of random searches in critically scarce environments C. L. Faustino, M. L. Lyra, E. P. Raposo et al. - Can collective searches profit from Lévy walk strategies? M C Santos, E P Raposo, G M Viswanathan et al. - To cite this article: Paula Borges da Silveira Bezerra et al 2017 Environ. Res. Lett. 12 095004 Optimal random searches of revisitable targets: Crossover from superdiffusive to ballistic random walks M. C. Santos, E. P. Raposo, G. M. Viswanathan et al. - View the article online for updates and enhancements. This content was downloaded from IP address 78.193.21.129 on 03/10/2023 at 09:18 https://doi.org/10.1088/1748-9326/aa7bdd nan Environ. Res. Lett. 12 (2017) 095004 OPEN ACCESS RECEIVED 30 January 2017 REVISED 5 June 2017 ACCEPTED FOR PUBLICATION 26 June 2017 PUBLISHED 23 August 2017 Original content from this work may be used under the terms of the Creative Commons Attribution 3.0 licence. Any further distribution of this work must maintain attribution to the author(s) and the title of the work, journal citation and DOI.The power of light: socio-economic and environmental implications of a rural electrification program in Brazil Paula Borges da Silveira Bezerra, Camila Ludovique Callegari, Aline Ribas, André F P Lucena, Joana Portugal-Pereira, Alexandre Koberle, Alexandre Szklo and Roberto Schaeffer1 Energy Planning Program, Graduate School of Engineering, Universidade Federal do Rio de Janeiro, Brazil 1 Author to whom any correspondence should be addressed. Keywords: Electricity access, poverty alleviation, human development, Luz para Todos, BrazilAbstract Universal access to electricity is deemed critical for improving living standards and indispensable for eradicating poverty and achieving sustainable development. In 2003, the ‘Luz para Todos’ (LpT—Light for All) program was launched aiming to universalize access to electricity in Brazil. The program focused on rural and isolated areas, also targeting to bring development to those regions along with electrification. This paper evaluates the results of the LpT program in improving socio-economic development in the poorest regions of Brazil. After an initial qualitative analysis, an empirical quantitative assessment of the influence of increased electrification rates on the components of the Human Development Index (HDI) is performed. The empirical results of this study showed that electrification had a positive influence on all dimensions of the HDI, with the education component having the strongest effect. Although complementary policies were needed to achieve this, results show that electricity access is a major requirement to improve quality of life. Any further distribution of this work must maintain attribution to the author(s) and the title of the work, journal citation and DOI.1. Introduction 2000),whichcauseharmful indoor air pollution (WHO 2014). In poorly ventilated dwellings, indoor smoke can be 100 times higher than acceptable levels, causing significant health damages (WHO 2016). Access to electricity not only releases people from hard work, but also increases productive working hours and provides opportunities for self-employment, in particular for women in rural areas (Dinkelman 2011). Some 13 million people did not have access to electricity in Brazil in 2000. This represented 7% of all households in the country, around 3 million. The situation became even more alarming when consider- ing the distribution of such households according to their income and location. From the aforementioned 3 million households, approximately 2 million were located in rural areas. This represented 29% of rural homes in Brazil at that time. Depending on the region, these numbers also varied significantly: around 1% of the Southeast’s households did not have access to electricity, while in the North almost 18% were in that situation (IBGE 2000). Universal access to electricity is not only critical for improvinglivingstandardsbutdeemedindispensablefor eradicating poverty and achieving sustainable develop- ment (GNESD 2007). Because this is widely accepted today, ensuring universal access to affordable electricity by 2030 was incorporated directly in the Sustainable Development Goals (UNGA 2015). Increasing income by itself cannot guarantee some basic services and needs and cannot improve living conditions if it is not combinedwithinfrastructure(UNDP2002,Cook2011). A National Program of Universalization of Access and Use of Electricity (Light for All), the ‘Luz para Todos’ (LpT) program, was launched by the Brazilian government in 2003 with the goal of extending access to electricity to all rural communities in the country. Universal access to electricity is not only critical for improvinglivingstandardsbutdeemedindispensablefor eradicating poverty and achieving sustainable develop- ment (GNESD 2007). Because this is widely accepted today, ensuring universal access to affordable electricity by 2030 was incorporated directly in the Sustainable Development Goals (UNGA 2015). Increasing income by itself cannot guarantee some basic services and needs and cannot improve living conditions if it is not combinedwithinfrastructure(UNDP2002,Cook2011). Electrification provides a solid basis for develop- ment of local communities.Once a community has access to electricity, itcan alsohave access to safepotable water, better health conditions, food security, as well as lighting and information. In addition, it reduces the needforcollectingandusingothertraditionalsourcesof energy, such as firewood, animal dung, and crop residues for cooking and heating (Goldemberg et al A National Program of Universalization of Access and Use of Electricity (Light for All), the ‘Luz para Todos’ (LpT) program, was launched by the Brazilian government in 2003 with the goal of extending access to electricity to all rural communities in the country. © 2017 IOP Publishing Ltd Environ. Res. Lett. 12 (2017) 095004 nan Some studies evaluated the extent to which the LpT program increased income and promoted the social inclusion of benefitted communities (Coelho and Goldemberg 2013, Gómez and Silveira 2012, Pereira et al 2010, Slough et al 2015). However, there is a lack of formal empirical assessments that attempted to quantitatively measure the socio-economic improve- ments associated with the LpT program. the 1940s. Rural cooperatives were an initiative created bylocalcommunitiestobeabletofinancetheinstallation of transmission lines and guarantee access to electricity. During the decades that followed, other initiatives took place,for instance:theRuralElectrificationFund (FUER —Fundo de Eletrificação Rural, in Portuguese), created in the mid-1950s; the Executive Group for Rural Electrification(GEER—GrupoExecutivodeEletrificação Rural, in Portuguese), created in 1970; the First and Second National Rural Electrification Plan (PNER— Plano Nacional de Eletrificação Rural, in Portuguese), implemented during the 1970s; the Program for Energy Development of States and Municipalities (PRODEEM —Programa de Desenvolvimento Energético de Estados e Municípios, in Portuguese), launched in 1994; and later the Light in the Countryside (Luz no Campo, in Portuguese), created in 19992. ThispaperevaluatestheresultsoftheLpTprogramin improving socio-economic development in the poorest regions of Brazil. To do so, aninitial qualitative analysis is madebasedonexistingdata,literatureandassessmentsof theprogram.Onasecondstage,anempiricalquantitative assessment of the program’s results is performed, which contributestotheexistingbodyofanalysisontheimpacts of rural electrification in the country. Thispaperisorganizedinfivesections.Followingthe introduction, a background section overviews the socio- economic context of the LpT program and its policy framework. From this point, in section 3, implications foreconomic,socialandenvironmentaldevelopmentare unveiled qualitatively. Section 4 details results of the empirical assessment conducted to quantitatively mea- sure the socio-economic improvements associated with the program.This is followed by final remarks. Figure 1 shows the rate of electricity access in Brazil between 1950 and 2000. Despite the evolution observed after the 1970s, there were still significant differences between the level of electrification in urban and rural areas. In 1991, 97% of the population of urban areas already had access to electricity, while, in the country- side, this number did not reach 50% (ANEEL 2005).2.1. The national program of universalization of2.1. The national program of universalization of access and use of electricity—LpT (Light for all) 2.1. The national program of universalization of access and use of electricity—LpT (Light for all) In November 2003, the LpT Program was established by decree N° 4873 (Fugimoto 2005). The program was coordinated by the Ministry of Mines and Energy (MME) and came as a consequence of Law 10 438 of 2002 that had set parameters to guarantee universali- zation of electricity. The program aimed to increase the electrification rate in the country, providing power to 10 million people until 2008, especially those living in rural areas (Brazil 2003). 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