Adhemar Ronquim Filho, Luciana Oranges Cezarino and Geraldo Jose Ferraresi de Araujo
Bioelectricity from sugarcane presents possibilities of gaining prominence as an energy source in the coming years, contributing to sustainable development and being a relevant…
Abstract
Purpose
Bioelectricity from sugarcane presents possibilities of gaining prominence as an energy source in the coming years, contributing to sustainable development and being a relevant pillar of Brazil’s energy matrix, based on its advantages and the measures that can stimulate it. The purpose of this study is to contribute to a new framework for improving the regulatory framework for Brazilian sugarcane bioelectricity that facilitates the governance of its stakeholders and their respective relationships.
Design/methodology/approach
Exploratory and qualitative research, adopting, in addition to theoretical and practical research, consultations with experts, combined with analysis of documents relating to sustainability reports released by companies in the sector.
Findings
In the observed reports of 23 companies, it was found that 14 give full relevance to bagasse energy, and it can be attested that sugar-energy bioelectricity includes social, economic and environmental dimensions. In addition, the work presented elements that can benefit cogeneration, such as reduction or exemption of the distribution system use tariff for energy generation from bagasse; freedom for full commercialization in the free energy market, including small consumers; contractual simplification and solidification of financial compensation for clean energy production.
Originality/value
The work contributes to the advancement of theoretical references of business economics and competitiveness for practical application in competitive sustainability environments.
Details
Keywords
Geraldo Jose Ferraresi de Araujo, Adhemar Ronquim Filho, Luciana Oranges Cezarino and Lara Bartocci Liboni
Renewables such as sugar-energy biomass can contribute to national electrical security, job creation and mitigation of greenhouse gas emissions. However, after the auction of…
Abstract
Purpose
Renewables such as sugar-energy biomass can contribute to national electrical security, job creation and mitigation of greenhouse gas emissions. However, after the auction of reserve energy, in 2008, exclusive biomass, in the regulated contracting environment (RCE), the authors observe that this energy environment has lost competitiveness in the auctions. Thus, a study on the present theme is justified, based on the problem: What are the reasons for the lack of competitiveness of sugar-energy bioelectricity in the Auctions of the RCE of the National Electric Energy Agency? The purpose of this study is to understand the situation of sugar-energy bioelectricity in the Brazilian market.
Design/methodology/approach
Literature review was conducted through the Scientific Electronic Library Online database, as well as the survey of primary documents at Sugarcane Industry Union and Electric Energy Trading Chamber.
Findings
The reasons for lack of competitiveness in RCE electricity auctions are: distant location of transmission lines; difficulties in obtaining licensing; delay in responses from environmental agencies; difficulties in securing financing for electricity generation projects for distilleries; non-pricing of positive environmental externalities as adequate disposal of waste; and the non-recovery of the cost of retrofit of the plants. The present situation may create economic, social and ecological circumstances adverse for Brazilian development, such as a lack of employment and income generation, loss of international currencies from imports of technologies not developed and produced in the country and more significant inefficiency greenhouse gas mitigation.
Originality/value
The originality of this study is in the contribution to the scarce literature on the understanding of the reasons for the lack of competitiveness of the Brazilian sugarcane sector in auctions of the regulated energy environment, based on SWOT analysis and, based on this understanding, to propose solutions for the expansion of this important matrix energy.