Challenges and outlook for hydropower development in Brazil

摘要

Despite the intrinsic renewable characteristic of hydropower, its various socially valuable benefits, and the fact that significant potential remains, since 2008 the number of new hydropower projects has considerably reduced in Brazil. This article has discussed a set of key challenges facing the implementation of new medium- and large-scale hydro projects in Brazil, including the high level of financial exposure in the spot market; social and environmental issues; and climate change aspects. Actions to address these identified challenges have been examined, in an attempt to encourage medium-and large-size hydroelectric development in Brazil and possibly in other regions of the world. In Brazil actions have included two laws allowing for the renegotiation of the unmanageable exposure to hydrological risk, to mitigate the financial losses incurred by the owners of hydropower plants participating in the energy reallo-cation mechanism.