Alternative energy policy for mitigating the asynchrony of the wind-power industry’s supply chain in Brazil

Abstract

High dependency on hydroelectricity has revealed drawbacks in the security of power supplies as a consequence of the climate variability in South America. Under these conditions, Brazil is starting to consider alternative renewable sources for energy production, seeking to avoid periods of scarcity while also promoting clean technologies in its electricity market. Since 2004, wind power has shown a significant rise in terms of installed capacity in this country. Despite increases in wind-power units, Brazil suffers from delays in setting up its transmission infrastructure, which affects the performance of the wind-power supply chain. This chapter presents a simulation model that helps assess the long-term effects of an alternative sustainable energy policy, which may contribute to overcoming the asynchrony between renewable generation policy and the insufficiency of transmission infrastructure. Using lessons learned from simulations, the research concludes that the transmission industry in Brazil requires appropriate investment incentives for just-in-time synchrony with the expansion of the wind industry.