Abstract

This paper presents a comparative analysis of energy governance regarding nonconventional renewable energy sources (NCRES) in Brazil and Germany. Brazil is a world leader in the use of conventional renewable energy sources, such as hydro power, while Germany has been achieving outstanding results in fostering NCRES. The focus is on two critical issues: the legal and regulatory framework and the institutions created to support the NCRES market development. The comparison shows that, despite the very different energy situations and policy drivers, valuables lessons can be extracted from the German experience. The main lesson for Brazil is to think NCRES as a strategic opportunity to rely less on fossil fuel and large hydroelectric power plants, to decentralize the electric power sector, to use the huge solar, biomass and wind power potential available in the country and to create a environment-friendly NCRES industry. To this end, three critical points were identified: (1) the legal and regulatory framework should be improved; (2) long-term energy planning taking into account social, economic and climate issues and; (3) the current institutions supporting NCRES in Brazil should be upgraded and/or new ones, such as more specific energy agencies, should be created.

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