| Work Detail |
Experiences identified in the Decarbonization of Isolated Systems in the Amazon study show that small-scale, standalone solar systems that are more efficient and have lower operating costs could be a viable solution for decarbonizing energy in the Amazon region. The average cost of generating electricity with solar panels combined with batteries could be 44% lower than that of using diesel generators, assuming a 25-year runtime. The projection is part of a technical analysis conducted by the consulting firm Envol, at the request of the National Front of Energy Consumers (FNCE), which estimated the monthly cost for families using diesel generators in remote areas of the Amazon at 900 reais (approximately $159). Although it requires a higher initial investment, solar energy is more economically advantageous because it eliminates recurring fuel costs and offers continuous performance after installation. The combined use of batteries allows consumers to have electricity 24 hours a day. While the National Interconnected System (SIN) grid is 87% renewable, one of the cleanest in the world, in the disconnected distribution networks of the SIN, the so-called Isolated Systems (SISOL), located in the Legal Amazon, 89% of the electricity is generated from fossil fuels. This energy accounts for 18.3% of Brazils global emissions and only 3.8% of the CO2e emitted in the Amazon biome. Although relatively small, the greenhouse gas emissions from the SISOLs are the result of an expensive, inefficient, and polluting model that, while generating inequality, can now be replaced by new technologies and renewable sources, warns the FNCE. “Decarbonizing isolated systems is not just an environmental issue. Transitioning from fossil fuels to renewable sources of electricity generation in the Amazon means promoting social inclusion and development, with reduced greenhouse gas emissions, lower costs, and increased quality of access to this essential service,” says Luiz Eduardo Barata, president of the FNCE. “With access to clean, stable, and cheaper electricity, families living in the region will be able to enjoy greater comfort, dignity, security, and opportunities.” Figures from the Energy Studies Company (EPE) show that diesels share of electricity generation in SISOL has been declining in recent years. In 2018, the fuel accounted for 97% of the electricity generated in the region, while in 2024 the proportion was 67%. Electricity generation in SISOL is also significantly more expensive than generation in SIN (Mix ACR) due to the predominance of fossil fuels. Among the fossil fuels used in SISOL, diesel stands out, costing 2,000 reais/MWh and natural gas at 944 reais/MWh, while the average cost of electricity generation in SIN is 238 reais/MWh. Other sources used in isolated systems, such as vegetable oils, forest residues, among others, despite being renewable, have very high costs. To pay for such expensive electricity generation, Decree 7,246/2010 established that the Fuel Consumption Account (CCC), assigned to the Energy Development Account (CDE), must reimburse this cost. Currently, the CCC is one of the largest components of the CDE and accounts for almost 25% of this total charge, which is levied on electricity bills. |
