Effects of the Penetration of Wind Power in the Brazilian Electricity Market

Abstract

Climate variability has been the main driver for renewables in the Brazilian electricity market. This article analyzes the vulnerabilities of the dependence on hydropower in renewable energy production due to climate variation, as well as wind power penetration in Brazil, given a set of wind industry policies. Despite Brazilian renewable energy increase, the study shows the impact in energy supply in north region, due to the lack of transmission infrastructure. In Brazil, the potential trade-offs between renewables growth, and transmission infrastructure inconsistencies in terms of policy implementation are not yet well analyzed. Simulation results show the potential conflicts between energy policies aimed at increasing the wind power supply and boundaries in transmission infrastructure.