Brazil building microgrid

Does Brazil need a microgrid?

The regulatory framework in Brazil is still adapting to include microgrids in its power sector. In this sense, micro and minigeneration regulation and energy storage R&D, besides the white tariff and smart metering, are important to support its development. One of the largest energy consumers at UFRJ is the CT.

Can Brazil integrate microgrids in rural electrification programs?

Despite Brazil’s experience with microgrids in rural electrification programs, the country will have to face many challenges to integrate them into the grid. High investment costs are currently an economic barrier for microgrids.

How can microgrids reduce investment costs in Brazil?

In Brazil, the development of financial mechanisms for DG, the Green Fund and some sectorial funds can leverage the creation of mechanisms that could reduce the high investment costs for microgrids. Market challenges include the participation of microgrids in the market so they are able to sell their products and services.

How to promote DG and microgrids in Brazil?

Besides, issues such as tariff structure and distribution planning could promote DG and microgrids in Brazil. The microgrid could be subject to a flat buying and selling electricity rate or to a varying rate with time (Time-of-Use - ToU) for buying and selling electricity. In order to stimulate microgrids, the ToU tariff could be important.

Are high investment costs an economic barrier for microgrids?

High investment costs are currently an economic barrier for microgrids. Unlike traditional energy projects, a microgrid’s economic evaluation represents unique challenges, which need a local and specific assessment.

Can a microgrid improve the economy?

Market challenges Microgrids’ ability to supply energy and services could generate revenues and improve their economy. Some of New York’s microgrids (New York University, Coop City, and Cornell University), can sell their surplus energy to the grid ( Leonhardt et al., 2015, Nyserda, 2010 ).