Abstract
State regulation in the electricity sector is essential for economic development and serves as a foundation for sustainability in the modern world. Several incentives have been put in place to stimulate energy generation through renewable resources in Brazil, starting with Decree 5.163 from 2004 and Normative Resolution – REN no. 482 from ANEEL (National Electricity Regulatory Agency), which established ways for consumers to generate electricity for their own consumption using renewable sources, and to distribute this energy back to the grid via a net-metering system. This article addresses the issue of electric energy control, generation, and distribution, and gives new perspectives from within the Distributed Generation (DG) system. The main objective of this article is to analyze the incentive mechanisms for DG in Brazil from a constitutional standpoint, which were set forth to promote economic development in the Federal Constitution of 1988. Furthermore, this study discusses the regulatory nature of the State, and changes to its role in economic intervention, discussing economic development concepts for how regulation might impact the development and promotion of DG in Brazil.
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