Barriers to the Expansion of Sugarcane Bioelectricity in Brazilian Energy Transition

Munir Younes Soares (), Dorel Soares Ramos, Margareth de Oliveira Pavan and Fabio A. Diuana
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Munir Younes Soares: Department of Energy Engineering and Electrical Automation, Polytechnic School of the University of São Paulo, São Paulo 05508-010, Brazil
Dorel Soares Ramos: Department of Energy Engineering and Electrical Automation, Polytechnic School of the University of São Paulo, São Paulo 05508-010, Brazil
Margareth de Oliveira Pavan: Production Engineering Department, Polytechnic School of the University of São Paulo, São Paulo 05508-010, Brazil
Fabio A. Diuana: Energy Planning Program, Graduate School of Engineering, Universidade Federal do Rio de Janeiro, Centro de Tecnologia, Bloco C, Sala 211, Cidade Universitaria, Ilha do Fundão, Rio de Janeiro 21941-972, Brazil

Energies, 2023, vol. 16, issue 2, 1-18

Abstract: This article evaluated bioelectricity’s evolving competitiveness and systemic complementarity benefits, both in comparison with other renewable sources. To do so, the results of several energy auctions were analysed, and a modelling exercise was developed using an optimisation model based on stochastic dual dynamic programming. The results indicate that wind and solar energies became the least cost expansions, and sugarcane bioelectricity lost significance and competitiveness in this environment. At the same time, the study shows that wind power’s potential to be complementary to hydropower generation is greater than bioenergy in Brazil. These findings have relevant policy implications regarding the power sector and whether bioelectricity from sugarcane should still be incentivised along with wind power sources. It is worthwhile to point out that although the Brazilian case is explored in the article, it can be used as an example by other countries, especially developing ones, that can take advantage of Brazilian expertise on biomass exploitation aiming at integration with the power sector.

Keywords: bioelectricity; competitiveness; barriers; complementarity; energy auction (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2023
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