Generation of Renewable Energy (Biogas) in the Western Region of Paraná/Brazil—A Multicase Study from the Viewpoint of Contracts

Abstract

The growth of Brazilian agribusiness has sparked interest in research and putting forth ideas for repurposing agricultural waste while reducing any negative effects on the environment. Therefore, taking into account the economics of transaction costs, this study aims to analyze the relationships that permeate the governance structure for the generation of bioenergy through swine farming waste in business models implemented in the Western Region of Paraná, Brazil, a region with significant production of pigs and a pioneer in the implementation of biogas production projects. The investigation strategy for this study was the case study methodology. Empirical data, analyzed qualitatively, were obtained through the analysis of contracts and interviews with power plant managers and pig producers. The main findings point to the evolution of business models for bioenergy generation, changes in the sector’s governance structure, and improvement in the contractual models used. Changes in the state’s conduct, including a decrease in its involvement as a financing agent and an increase in its role in promoting policies that structure the legal system, were also noted. Finally, it is inferred that the sector needs to structure an institutional setting capable of mitigating existing legal insecurities and uncertainties.