Integrated resources planning as a tool to address energy poverty in Brazil

Abstract

This paper departs from a planning tool to assist policy makers and energy planners to improve energy access and affordability, besides developmental needs of low-income/underserved households and small entrepreneurs. The methodology aims to systematically integrate energy technologies (supply and demand-side), new and innovative business models and local developmental issues into long term power plans by applying concepts and the process known as Integrated Resources Planning (IRP). To illustrate the application of the methodology, referred to as IRP-Access in this paper, some possibilities are tested to reduce Energy Service Costs (EC), analyzing the impacts in the electricity affordability of low-income consumers. For this purpose, we use data from a Brazilian electricity concessionaire which operates in a complex socioeconomic region in the Southeast of the country, where the energy access is solved, but affordability is still a current issue. The results illustrate the potential of implementing technological alternatives in Brazil, from the supply and demand side, in order to improve affordability, to address energy poverty and to systematically incorporate such critical issues into the long-term energy planning.