Brazil - Rural Electrification with Renewable Energy Systems in the Northeast : A Preinvestment Study

This ESMAP study was a response to a request by the World Bank's Latin America and Caribbean (LAC) Regional Office for support in designing an innovative project to deliver energy services to dispersed rural areas of Brazil. The project aims t...

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Bibliographic Details
Main Author: World Bank
Language:English
en_US
Published: Washington, DC 2014
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2000/07/717466/rural-electrification-renewable-energy-systems-northeast-preinvestment-study
http://hdl.handle.net/10986/20318
Description
Summary:This ESMAP study was a response to a request by the World Bank's Latin America and Caribbean (LAC) Regional Office for support in designing an innovative project to deliver energy services to dispersed rural areas of Brazil. The project aims to address the likely adverse consequences of privatizing the state power utilities on incentives for investments to supply essential electricity services to the dispersed, low-income population in rural areas of Brazil. To improve electricity access to these areas in the long term, needed is a commercially sustainable dissemination activity that should be carried out by and with equity from the private sector, through a system of incentives that assures fair returns to private participants while minimizing government subsidies. The coverage should include productive applications, community-oriented or public service applications, and residential applications. An optimal mix of subsidized and unsubsidized market segments and a critical total mass of potential customers are the key ingredients that could attract private investors in the dispersed area market. This type of effort is consistent with the Bank's current Country Assistance Strategy for Brazil, which emphasizes the importance of private sector-led growth, poverty reduction policies, and environmental objectives.