Main issues - INDIGENOUS AND ADAPTED ENERGY TECHNOLOGIES AND

4. INDIGENOUS AND ADAPTED ENERGY TECHNOLOGIES AND

4.3. Main issues

4.3. MAIN ISSUES

Some of the major issues related to indigenous and adapted energy technologies and energy efficiency are the following:

●The use of alcohol in Brazil’s transport sector is a good example of the real possibilities for modern biomass use in a developing country.

PROALCOOL, the Brazilian Alcohol Programme, is the world’s largest commercial biomass to energy programme. Alcohol from sugar cane is now competitive with gasoline without any subsidies. Besides alcohol fuel, the sugar cane sector also generates electricity from bagasse, a by-product of sugar cane crushing; thus the mills do not need to ‘import’

energy (fossil fuels or electricity), which is the main reason why alcohol production costs are low. Moreover, the mills export electricity to the grid.

0.70 0.75 0.80 0.85 0.90 0.95 1.00 1.05 1.10

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 Cement industry Iron and steel - raw steel

1980 = 1.00

FIG. 4.5. Indices of specific thermal energy use in the cement and iron and steel industries [4.51–4.53].

Note: In 1980, the specific thermal energy use in the cement industry was 4.32 MJ/kg and the specific thermal energy use in the iron and steel industry was 23.79 MJ/kg.

0.80 0.85 0.90 0.95 1.00 1.05 1.10 1.15 1.20

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 Cement industry Iron and steel - raw steel

1980 = 1.00

FIG. 4.6. Indices of specific electricity consumption in the cement and iron and steel industry [4.51–4.53].

Note: In 1980, the specific electricity consumption in the cement industry was 118 kW·h/t and the specific electricity consumption in the iron and steel industry was 581 kW·h/t.

14.5 15.0 15.5 16.0 16.5

1985 1987 1989 1991 1993 1995 1997 1999 2001

Brazil World

MW·h/t

FIG. 4.7. Specific electricity consumption in the aluminium industry in Brazil and worldwide [4.52, 4.54].

0 100 200 300 400 500 600

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

MJ/m2

FIG. 4.8. Specific thermal energy use in the ceramics industry [4.52, 4.55].

5 6 7 8 9 10 11

1990 1992 1994 1996 1998 2000 2002

kW·h/m2

FIG. 4.9. Specific electricity consumption in the ceramics industry [4.52, 4.55].

●Another significant experience with biomass in Brazil is the use of charcoal to replace coal in the iron and steel industry. In this sector, charcoal is produced in a sustainable way, using reforested wood. Special programmes in support of wood production from refores-tation have been introduced in Brazil, together with more efficient technologies for charcoal production.

●Around 80% of Brazil’s electricity supply (around 62.5 GW in 2002) comes from hydropower, requiring a large transmission/

distribution system to supply energy to most States (only the northern States are not linked to this grid). A strong industry segment was developed to produce equipment and trans-mission lines for this supply system.

●Most of Brazil’s oil production comes from deep and ultra-deep water, and this pro-portion is rising as exploration pushes into deeper water. Most exploration is performed by Petrobras, Brazil’s national oil company.

This is a good example of a huge technological task faced by many developing countries, namely, to acquire a place on the technology frontier that parallels those more commonly taken by industrialized countries.

●Regarding energy efficiency, Brazil uses many of the technologies used worldwide. Most of these end use technologies are produced locally by Brazilian and/or multinational companies. The PROCEL programme on energy efficiency introduced the labelling system for some end use technologies, but much still needs to be done to promote energy efficiency in general.

REFERENCES

[4.1] GOLDEMBERG, J., COELHO, S.T., NASTARI, P., LUCON, O.S, Ethanol learning curve — The Brazilian experience, Biomass and Bioenergy 26 3 (2003) 301.

[4.2] MOREIRA, J.R., GOLDEMBERG, J., The alcohol program, Energy Policy 27 4 (1999) 229.

[4.3] BRAUNBECK, O., BAUEN, A., ROSILLO-CALLE, F., CORTEZ, L., Prospects for green cane harvesting and cane residue use in Brazil, Biomass and Bioenergy 17 (1999) 495.

[4.4] BRAUNBECK, O., CORTEZ, L., “Sugar-cane culture and use of residues”, Industrial Uses of Biomass Energy — The Example of Brazil (ROSILLO-CALLE, F., BAJAY, S.V.,

ROTHMAN, H., Eds), Taylor & Francis, London (2000) 277 pp.

[4.5] NASTARI, P. (Ed.), Datagro, Vol. 4, Datagro, São Paulo (1997).

[4.6] MACEDO, I.C., CORTEZ, L., “Sugar-cane industrial processing in Brazil”, Industrial Uses of Biomass Energy — The Example of Brazil (ROSILLO-CALLE, F., BAJAY, S.V., ROTHMAN, H., Eds), Taylor & Francis, London (2000) 277 pp.

[4.7] MACEDO, I.C., Energy from Sugar Cane in Brazil, paper presented at the workshop on Sustainability of Generation and Energy Use in Brazil — The Next 20 Years, UNICAMP 2002, University of Campinas, 2002.

[4.8] CORTEZ, L., GRIFFIN, M., SCANDIFFIO, M., SCARAMUCCI, J., Worldwide Use of Ethanol: A Contribution for Economic and Environmental Sustainability, report for the Conference on Sustainable Development of Energy, Water and Environment Systems, 2–7 June 2002, Dubrovnik (2002).

[4.9] UNICA (UNIÃO DA AGROINDÚSTRIA CANAVIEIRA DE SÃO PAULO), Produção de Álcool Total — Brasil, UNICA, São Paulo (2002), www.unica.com.br/pages/estatisticas/

prod_alcooltotal_br.htm

[4.10] CARVALHO, L.C.C., Hora da virada, Agroanal-ysis 21 9 (2001), Fundação Getúlio Vargas, Rio de Janeiro.

[4.11] FIPE (FUNDAÇÃO INSTITUTO DE PESQUISAS E TECNOLÓGICAS), Scenarios for the Sugar and Alcohol Sector, FIPE, São Paulo University, São Paulo (2001) (in Portuguese).

[4.12] JOSEPH, H., Jr., Brazilian Automotive Industry Association (ANFAVEA), personal communica-tion, São Paulo (2003).

[4.13] GOMES NETO, E.H., Pesquisa e Desenvolvi-mento no Brasil de Células a Combustível (Fuel Cells) (2004), www.brasilh2.com.br/BrasilH2/cac/

pedbrasil/pedbr.htm

[4.14] ROSILLO-CALLE, F., BEZZON, G., “Produc-tion and use of industrial charcoal”, Industrial Uses of Biomass Energy — The Example of Brazil (ROSILLO-CALLE, F., BAJAY, S.V., ROTHMAN, H., Eds), Taylor & Francis, London (2000) 277 pp.

[4.15] BEZZON, G., ROCHA, J.D., “Pyrolysis in new technologies for modern biomass energy carriers”, Industrial Uses of Biomass Energy — The Example of Brazil (ROSILLO-CALLE, F., BAJAY, S.V., ROTHMAN, H., Eds), Taylor &

Francis, London (2000) 277 pp.

[4.16] PROVEGAM, Electricity Generation from Vegetable Oils in Amazon, study under develop-ment by CENBIO/USP, COPPE/UFRJ and Amazonian institutions, funded by FINEP, Ministry of Science and Technology, Brasilia (2003) (in Portuguese).

[4.17] MACEDO, I.C., NOGUEIRA, L.A.H., Avaliação do biodiesel no Brasil, Cadernos NAE / Núcleo de Assuntos Estratégicos da Presidência da República 2 (Jan. 2005), Núcleo de Assuntos Estratégicos da Presidência da República, Secretaria de Comunicação de Governo e Gestão Estratégica, Brasilia (2005).

[4.18] GCPS, Estimativa do Potencial de Cogeração no Brasil, Diretoria de Planejamento e Engenharia, Eletrobras, Rio de Janeiro (1999).

[4.19] CENBIO (BRAZILIAN REFERENCE CENTRE ON BIOMASS), Medidas Mitigadoras para a Redução de Emissões de Gases de Efeito Estufa na Geração Termelétrica, ANEEL, Brasilia, 1999–2000, CENBIO, São Paulo (2001) 222 pp.

[4.20] CENBIO (BRAZILIAN REFERENCE CENTRE ON BIOMASS), Relatório Completo

— Parámetros Económicos para a Geração de Energia Elétrica a partir de Biomassa, CENBIO, São Paulo (2003).

[4.21] SCHAEFFER, R., LOGAN, J., SZKLO, A., CHANDLER, W., MARQUES, J., Developing Countries and Global Climate Change: Electric Power Options in Brazil, technical report, Pew Center on Global Climate Change, Arlington, VA (2000).

[4.22] ELETROBRAS, Ten-Year Expansion Plan 2001–

2010, Electrobras, Rio de Janeiro (2000).

[4.23] LUZ, G.S., DE MACEDO, N.J.P., DE OLIVEIRA, V.R., Analysis of the Performance of Serra da Mesa’s TCSC in the Electromechanical Stability Program ANATEM, Proc. XVI SNPTEE, Campinas, 2001 (2001) (in Portuguese).

[4.24] KASTRUP, O., et al., Lightning Performance Assessment with Line Arresters, Proc. 1996 IEEE Transmission and Distribution Conf. and Exposi-tion, Los Angeles, CA (1996) 288–293.

[4.25] BEZERRA, A.C.G., Improvement in the performance of lines with ZnO surge arresters, Eletricidade Moderna, Editora Aranda 330 (Sept.

2001) 46–57 (in Portuguese).

[4.26] MOREIRA, I.S., MELLO, J.L.S., PROS-DÓCIMO, N., New insulation and refurbishment of lines for increasing transmission capacity, Elet-ricidade Moderna, Editora Aranda 330 (Sept.

2001) 58–64 (in Portuguese).

[4.27] UNITED NATIONS, World Population Pros-pects: The 2002 Revision Population Database, United Nations Department of Economic and Social Affairs Population Division, New York (2003).

[4.28] INTERNATIONAL ENERGY AGENCY, World Energy Outlook, OECD, Paris (2003).

[4.29] FREITAS, A.G.F., Petrobras Technological Learning Process: The Technological Capability Program in Offshore Production Systems, PhD Dissertation, FEM/UNICAMP, Campinas (1999) 284 pp. (in Portuguese).

[4.30] PETROBRAS, PROCAP 3000, International Communications, Petrobras, Rio de Janeiro (2001), www2.petrobras.com.br/tecnologia2/ing/

index.htm

[4.31] DOUGLAS-WESTWOOD LTD., The Prospects for World Deep Water Market, report presented at the Petrotech 2003 conference in New Delhi, www.dw-1.com/

[4.32] INFIELD SYSTEMS, Deep Water Online, Infield Systems, London (2003), www.infield.com/

offshore_publications_section.htm

[4.33] UNITED STATES GEOLOGICAL SURVEY, World Petroleum Assessment 2000, USGS World Energy Assessment Team, USGS Digital Data Series – DDS – 60, USGS, Washington, DC (2000).

[4.34] ANP (NATIONAL PETROLEUM AGENCY), Anuário Estatístico 2002, ANP, Rio de Janeiro (2002), www.anp.gov.br/petro/dados_estatisticos.

asp#, 2002

[4.35] PINTO, A.C.C., et al., Offshore Heavy Oil in Campos Basin: The Petrobras Experience, 2003 Offshore Technology Conference, Houston, TX, 2003 (2003).

[4.36] SUSLICK, S.B., SCHIOZER, D.J., NEPOMU-CENO FILHO, F., FURTADO, R., Forecasting the Development of Heavy-Oil Reserves in Ultra-Deep Waters Using Technological Risk Models, report prepared for the SPE Hydrocarbon Economics and Evaluation Symposium, Dallas, TX, 2003 (2003).

[4.37] ASSAYAG, M.L., PLAVNIK, B., RIBEIRO, O., Technological Innovation Program on Deep Water Exploitation Systems — PROCAP 2000, Proc. SPE International Petroleum Conf. and Exhibition, SPE 35347, Villahermosa (1996) 353–366.

[4.38] FURTADO, A.T., SUSLICK, S.B., PEREIRA, N.M., FREITAS, A.G., BACH, L., Assessment of direct and indirect effects of large technological programs: Petrobras deepwater programs in Brazil, Research Evaluation 8 3 (1999) 155.

[4.39] IBGE (BRAZILIAN INSTITUTE OF GEOGRAPHY AND STATISTICS), Censo Demográfico do Brasil 2000, IBGE, Rio de Janeiro (2002).

[4.40] QUEIROZ, G.C., JANNUZZI, G.M., VEN-DRUSCULO, E.A., BORGES, T., POMILIO, J.A., A Life-Cycle Cost Analysis (LCCA) for Setting Energy-Efficiency Standards in Brazil: The Case of Residential Refrigerators, Energy Discus-sion Paper No. 2.56-01/03, International Energy Initiative, São Paulo (2003),

www.iei-la.org/documents/RelIEI2-56-01-03.pdf [4.41] GELLER, H., Transforming End-Use Efficiency

in Brazil, American Council for an Energy-Efficient Economy, Washington, DC (2000).

[4.42] ROIZENBLATT, I., Philips Lighting of Brazil, personal communication, São Paulo, 2003.

[4.43] CALWELL, C., ZUGEL, J., BANWELL, P., REED, W., “2001—A CFL odyssey: What went

right”, Proc. 2002 ACEEE Summer Study on Energy Efficiency in Buildings, Vol. 6, American Council for an Energy-Efficient Economy, Wash-ington, DC (2002) 15–27.

[4.44] TABOSA, R.P., Eletrobras/PROCEL, personal communication, Rio de Janeiro, 2001.

[4.45] HENRIQUES, M., Jr., Uso de Energia na Indústria Energo-Intensiva Brasileira: Indicadores de Eficiência e Potencial de Economia de Energia, Programa de Planejamento Energético (PPE), Coordenação dos Programas de Pós-Graduação de Engenharia, Universidade Federal do Rio de Janeiro, Rio de Janeiro (1995).

[4.46] GELLER, H., JANNUZZI, G.M., SCHAEFFER, R., TOLMASQUIM, M.T., The efficient use of electricity in Brazil: Progress and opportunities, Energy Policy 26 11 (1998) 859.

[4.47] DAVID, R., Research Market Study — Variable Frequency Drive System, Eletrobras/PROCEL, Rio de Janeiro (1997).

[4.48] SZKLO, A., SCHAEFFER, R., SCHÜLLER, M., CHANDLER, W., Brazilian energy policies side-effects on CO2 emissions reduction, Energy Policy 33 3 (2003) 349.

[4.49] BRAILE SAILES, J., Petrobras, personal commu-nication, Rio de Janeiro, 2004.

[4.50] WORRELL, E., PRICE, L., MARTIN, N., FARLA, J., SCHAEFFER, R., Energy intensity in the iron and steel industry: A comparison of physical and economic indicators, Energy Policy 25 7–9 (1997) 727.

[4.51] IBS (INSTITUTO BRASILEIRO DE SIDER-URGIA), Estatísticas da siderurgia – IBS – Anuário estatístico 2003, IBS, São Paulo (2003).

[4.52] MME (MINISTRY OF MINES AND ENERGY), National Energy Balance – Base-Year: 2002, MME Press, Brasilia (2003).

[4.53] SNIC (SINDICATO NACIONAL DA INDÚSTRIA DO CIMENTO), Anuário estatís-tico do Sindicato Nacional da Indústria de Cimento, Rio de Janeiro (2003).

[4.54] ABAL (ASSOCIAÇÃO BRASILEIRA DE ALUMÍNIO), Anuário Estatístico 2002, ABAL, São Paulo (2003).

[4.55] ABC (ASSOCIAÇÃO BRASILEIRA DE CERÂMICA), Anuário da Associação de Fabricantes de Cerâmica, ABC, São Paulo (2003).

Chapter 5 ENERGY AND ECONOMIC DEVELOPMENT

G. MACHADO, R. SCHAEFFER

When energy specialists discuss the relation-ships between energy use and economic devel-opment, the focus is usually on how energy supports economic growth, alleviates poverty and increases people’s well-being. On rare occasions, though, the effect that a country’s choices for promoting economic development have on energy production and use is a matter of concern. The purpose of this chapter is to evaluate the way Brazil’s choices for promoting economic development over time have impacted primary and final energy use in the country. Economic growth has different levels of quality, which lead to different economic development paths. Some paths are more effective than others in creating wealth and in protecting and preserving natural resources and the environment for future generations. Quality actually matters as much for economic development as for energy.

This chapter is divided into four sections covering energy and economic development relationships, the evolution of final energy use in Brazil, strategies to enhance sustainable energy development in the country and a summary of main issues. In Section 5.1, energy and economic development relationships are discussed, setting the background for the analysis of the impacts on final energy use of some of Brazil’s choices for promoting economic development. The section begins by focusing on the basics of energy and economic development relationships. It should be noted that most energy specialists usually discuss only the basics of energy and economic development (the ‘energy in support of economic development’ theme), but this approach alone is not enough to explain differences in countries’ final energy use patterns, or to identify strategies to enhance sustainable energy development. In this sense, the main contribution of this section is to further illuminate the role of social and economic choices in determining the effectiveness of a given country’s economic development and that country’s primary and final energy use patterns.

Section 5.2 assesses energy use in Brazil by analysing energy intensities. A decomposition

analysis technique is applied to final energy use figures to help identify the factors affecting final energy use in the Brazilian economy. Such a technique allows the decomposition of energy use changes into three basic effects: activity, structure and intensity. The activity effect results from the impact of overall economic growth on final energy use. The structure effect derives from the impact that the sectoral composition of the economy has on the final energy use of a country. The intensity effect refers to the final energy requirements per unit of activity of each sector considered (sectoral breakdown). Findings are contrasted with historical events and circumstances to provide a better under-standing of the impacts of Brazil’s economic and social choices on its final energy use patterns.

Section 5.3 recommends synergetic strategies to enhance sustainable energy development in Brazil based on what has been learned from the country’s previous economic and social choices and from the experiences of other countries. The final section is a summary of the main issues related to Brazil’s energy system and its economic development.

The chapter presents indicators mainly related to energy intensity. Other important economic indicators that are part of the Energy Indicators for Sustainable Development (EISD) set (see Chapter 1, Table 1.1) are addressed in other parts of the report: fuel mix in Chapter 2, reserves to production ratios in Chapter 3, technology efficiencies in Chapter 4, per capita energy use in Chapter 7 and import dependence in Chapter 8.

5.1. ENERGY AND ECONOMIC

DEVELOPMENT RELATIONSHIPS Modern energy sources are needed to support economic growth in contemporary societies, because most of their production activities (modern agriculture, industry, transport and services) rely on or demand them. Thus, ceteris paribus, a shortage of modern energy supply affects economic growth. In

addition, uncertainty about the future availability of modern energy supply to support higher levels of activity discourages expansion in production capacity by corporations, reinforcing negative impacts on current economic growth and constraining potential economic growth in the future. However, the fact that energy is needed to support economic activities does not imply that there is a universally and strictly fixed ratio between energy use and economic activity for all societies in the world at all times. On the contrary, such a ratio varies significantly across countries and over time, as Fig. 5.1 reveals.

Weather conditions, demography, territorial extension, natural resource availability, techno-logical development, cultural patterns, management standards, energy matrix and prices, economic structure, income distribution and lifestyles all affect the primary and final energy use/economic activity coefficients of countries. Some of those factors, such as weather and resource endowment, are driven by nature. However, others are socially and economically determined and change, or might change, from time to time, being a result of each country’s previous choices and decisions. Therefore, identifying the drivers of those changes and under-standing how choices and circumstances have affected such drivers are essential to building a more sustainable energy development path for the future of any country.

Figure 5.1 presents the trends in the overall primary energy intensity of Brazil and selected countries and regions of the world over the past three decades. It shows that Brazil registers one of the lowest overall primary energy intensities of the

entire set of selected countries and regions during most of this time period, which is largely explained by its heavy reliance on hydropower and on other modern energy sources and their end use technol-ogies (see Chapter 2). This reliance also contributes to a high overall primary to final energy conversion efficiency in Brazil, which hovers around 90%.¹ In spite of this high conversion efficiency, Brazil does not show any significant downward trend in its primary energy intensity over the period considered. On the contrary, over the second half of the period, Brazil’s overall primary energy intensity even increased slightly.

Figure 5.2 shows the theoretical energy–

environmental Kuznets curve. This curve traces the evolution of three different economic development stages: evolution from traditional to industrial societies, maturation of industrial societies and change from industrial to information societies [5.6, 5.7]. Some might argue that Brazil is a middle income country with significant energy needs that must still be fulfilled before it enters a period of lower energy intensity and higher per capita income.

At first glance, such an argument could sound reasonable. In such a case, as predicted by the energy–environmental Kuznets curve, more economic growth in the future would lead to an upward trend in Brazil’s overall energy intensity before a downward trend could be achieved.

0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45

1971 1975 1979 1983 1987 1991 1995 1999

World OECD North America European Community

Australia Non-OECD Japan

India Argentina Brazil

toe/thousand US $ PPP-1995

FIG. 5.1. Overall primary energy intensity in selected countries and regions of the world [5.1, 5.2].

1 Primary to final energy conversion efficiency is measured by the ratio of total final consumption to total primary energy supply, as defined by the International Energy Agency [5.3].

I III

GDP per capita Primary energy and/or environmental damage intensity

FIG. 5.2. Energy–environmental Kuznets curve (based on Refs [5.4, 5.5]). Stage I = evolution from traditional to industrial societies; Stage II = maturation of industrial soci-eties; Stage III = change from industrial to information societies.

However, relationships between primary energy use and economic activity are very complex, comprising qualitative social and economic changes rather than simple, quantitative per capita income growth.

Figure 5.3 shows the overall primary energy intensity versus per capita gross domestic product (GDP) for Brazil and selected countries and regions of the world in 2000.

It is not mandatory that the inverted U shaped trajectory of the energy–environmental Kuznets curve be replicated step by step. As pointed out by Goldemberg [5.8] and Yang [5.9], leapfrogging over some steps is possible, not only through the prompt adoption of some energy efficient, and environ-mentally sound, technologies, but also through the promotion of structural economic changes away from energy intensive and materials intensive industries and environmentally sensitive activities.

Today’s developing countries have better tech-nological opportunities than developed countries did when they were at similar per capita income levels; thus developing countries face a flatter curve and can achieve the turning point at lower levels of intensity (for both primary energy and environmental damage). In this sense, it is possible to build a tunnel through the ‘hill’, expressed by the energy–environmental Kuznets curve, by learning from the experiences of developed countries.

Understanding the impact previous choices and circumstances have on the relationships between energy and economic activity is a fundamental step in building a more sustainable energy development path for any country. To a great extent, future long term changes in a country’s energy profile will be a result of choices made today and in the near future.

5.2. EVOLUTION OF THE FINAL ENERGY USE PATTERN OF THE BRAZILIAN ECONOMY

Although nature might be a major driver in forging a country’s energy profile (climate, natural resource endowment, geography, distances, etc.), previous social and economic choices play a fundamental role in the evolution of final energy uses and environmental damage patterns. It does not matter whether or not such choices are conscious, or whether they are motivated by economic factors, by cultural lifestyle, by market

Dans le document Brazil: A Country Profile on Sustainable Energy Development | IAEA (Page 95-0)