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Brazil
>> Regional Overview >> Brazil Overview Activity Data Sheet
PROGRAM: BRAZIL
TITLE AND NUMBER: Increased adoption by key actors of concepts, methods and technologies for clean and efficient energy production and use, 512-002
PLANNED FY 2001 OBLIGATION AND ACCOUNT: $ 2,500,000 (DA)
PROPOSED FY 2002 OBLIGATION AND ACCOUNT: $ 1,000,000 (DA)
STATUS: Continuing
INITIAL OBLIGATION: FY 1998 ESTIMATED COMPLETION DATE: FY 2003Summary: Brazil is currently the largest emitter of greenhouse gases (GHG) in Latin America. In the 1991-1995 period, industrial carbon dioxide emissions increased by 20%. Further, Brazil is reshaping its existing energy industry and diversifying its energy sources. Given the structural changes in Brazil's economy and the continuing growth in energy demand, it is likely that GHG emissions from energy production will increase at a strong pace. USAID has provided assistance to Brazil to ensure that energy is used efficiently and energy demand is met by a combination of sources having the lowest GHG emitting potential. The purpose of this program is to increase adoption by key Brazilian Government and private sector entities of concepts, methods and technologies, such as biomass, solar energy, and efficient energy use, which have proven successful elsewhere. USAID works in close collaboration with the Government of Brazil (GOB), through its energy regulatory agencies, energy efficiency and rural renewable energy programs. The program supports GOB efforts in two major areas. The first aims to improve the performance of the national clean energy program for delivering energy to 20 million consumers situated in 60,000 rural communities at market determined prices. The energy source is renewable. The bulk of the target population is currently served by traditional non-renewable sources of energy, such as small diesel powered generators. The second program area emphasizes technical assistance and capacity building to energy regulatory agencies and the national energy efficiency program. It focuses on identifying, selecting, and proposing policies and regulations that will effectively impact the rational use of energy in the industrial and household sectors. These efforts are expected to result in clean and efficient energy production and use, while also benefiting the environment through significantly lowered GHG emissions.
Key Results: USAID efforts will continue to build on past successes for further expanding renewable energy applications and energy efficient technologies. Specifically, the National Regulatory Agency for the Power Sector (ANEEL) and the Brazilian Congress will provide incentives for tested and proven clean energy production systems. Funds of multilateral banks will be leveraged for project implementation improvements by the National Program for Energy Development in States and Municipalities (PRODEEM), and a $250 million World Bank-financed project for developing energy efficient projects will have begun implementation. Of this amount, $125 million will be released up-front, and $125 million will be released upon achievement of results agreed to in the first project phase.
Performance and Prospects: In FY 2000, USAID supported several of Brazil's key clean and efficient energy-related efforts. In partnership with Advanced Engineering Associates International (AEAI), USAID deployed a Senior Renewable Energy Advisor at PRODEEM to assist with implementing its newly approved Action Plan. PRODEEM was established in 1994 to diffuse and decentralize renewable energy systems to off-grid remote regions of Brazil. The social development model of rural electrification adopted at that time did not result in economically and financially feasible renewable energy projects. As a result, PRODEEM requested USAID's technical assistance to review and redefine PRODEEM's approach and management structure.
USAID and its implementing partner Winrock International identified incentives and the role of advocacy for promoting renewable energy generation under two key policy initiatives being promulgated by the Brazilian Government. They are the Ministry of Mines and Energy (MME) and ANEEL sponsored Bill Amendment No. 2905, and Draft Resolution #6/2000, both intended to advance Brazil's energy restructuring program. USAID-supported technical assistance resulted in proposals by MME and ANEEL to establish mechanisms for advancing clean energy production technologies nationwide. Mechanisms include the creation of a renewable energy development fund, and making available to other renewable energy providers the same benefits already given to small hydroelectric plants, such as discounted transmission services.
Under USAID's Brazil Energy Training and Outreach Program (BETOP), which is implemented by the Institute of International Education (IIE), eight training workshops were held from February through September 2000. Approximately 400 participants from 230 firms, the public sector, universities, and non-governmental organizations received training. The training activities focused on: improving the capacity of Brazilian energy regulatory bodies (federal and state); promoting greater private sector involvement in the ownership and operation of clean and efficient energy production enterprises; and building the capacity of banking institutions and loan officers to structure proposals for financing clean energy projects.
Also, during FY 2000 USAID's efforts resulted in the approval of a loan guarantee under its Development Credit Authority (DCA) mechanism, which will support the development of a waste-wood biomass co-generation plant. The new power plant will supply electricity and steam for commercial needs and sell surplus power to the grid. The use of funds under DCA resulted in a 1:31 leverage ratio. Based on this success and high applicability potential of DCA in Brazil if program funds are made available, USAID has already identified a number of clean energy projects interested in using the DCA as a partial loan guarantee.
USAID's Technology Cooperation Agreement Pilot Project (TCAPP) has supported initiatives that because of a shortage of funds have not been successful in terms of effectively resulting in the development of clean energy projects. Requested funding is crucial for the technology cooperation activities envisioned by TCAPP, which are not only environmentally friendly but also have the potential to showcase U.S. technologies in the Brazilian renewable energy and energy efficiency markets.
During FY 2001, of a total of $2,500,000, approximately $650,000 will be used to foster policies that promote clean and efficient energy; $450,000 will support capacity building activities for the availability and applicability of clean energy technologies, as well as financing mechanisms for clean energy projects; $650,000 will be used to increase the availability of financing for clean energy projects; $600,000 will promote technology cooperation between U.S. and Brazilian firms; and $150,000 for technical oversight and monitoring. With a reduced budget of $1,000,000 in FY 2002, $150,000 will be used to promote clean energy-related policies; $450,000 to support capacity building activities; $150,000 to increase the availability of financing for clean and efficient energy; $150,000 will fund technology cooperation activities; and $100,000 will be used for technical oversight and monitoring.
Possible Adjustments to Plans: None anticipated.
Other Donor Programs: USAID's strategy in Brazil for the energy sector focuses at the decision-making level. Consistent with this, USAID will continue to cooperate with other donors to leverage funds and coordinate overall efforts. USAID played a key role in helping the GOB in the preparation of a $125 million energy efficiency loan request to the World Bank, which includes future benefits of electricity savings of approximately 1% per year and CO2 emission reductions estimated at about 17 million tons over a 10-year period. USAID has cooperated with the United Nations Development Program (UNDP) by supporting the establishment of a Management Unit in PRODEEM, whose mandate is to manage selected activities under PRODEEM's Action Plan. This Unit is responsible for receiving and managing UNDP funds, as well as those of other donors. USAID has discussed with UNDP other possibilities of collaboration on several areas such as capacity building and private sector engagement.
Principal Contractors, Grantees, or Agencies: Current cooperating agencies and contractors include: Winrock International, the Institute of International Education (IIE), and PA Consulting, formerly Hagler Bailly.
Brazil 512-002
Performance Measures:
Indicator FY97
(Actual)FY98
(Actual)FY99
(Actual)FY00
(Actual)FY00
(Plan)FY01
(Plan)FY02
(Plan)Indicator 1: Cooperation initiatives that facilitated the application of clean and efficient energy technologies and know-how under Brazilian conditions NA 0 1 3 3 4 5 Indicator 2: Advancement of policies and regulations by key actors that contribute to the adoption of concepts, methods, and technologies for clean and efficient energy production and use NA 0 3 10 2 3 4 Indicator 3: Incorporation of concepts, methods, and technologies for clean and efficient energy production and use in the operations of key actors NA 0 2 4 3 5 7 Indicator 4: Clean and efficient energy projects under development, which are funded by mechanisms created, leveraged or supported by USAID NA 0 1 3 2 4 6 Indicator Information:
Indicator Level (S)or(IR) Unit of Measure Source Indicator Description Indicator 1: IR Number of cooperation initiatives (cumulative) Contractors, cooperating agencies, and key actors Cooperation initiatives are defined as pilot programs, research/development delegations, cooperative agreements between American and Brazilian organizations, U.S.-Brazil industry partnerships, executive exchanges, internships, etc. The cooperation initiatives to be counted are those: (i) directly or indirectly supported by USAID; (ii) targeted to promote "clean and efficient energy production and use." Various generation technologies are available, including small hydro, solar, biomass, wind and others. The feasibility of the implementation of such technologies in Brazil depends not only on technical issues but also on macroeconomic assumptions. The term "clean and efficient energy production and use" is interpreted as "any market-oriented and sustainable generation process or appropriate end-use of energy that implies close-to-zero or less-than-zero emission of green house gases." Indicator 2: IR Number of steps accomplished in policy formation (cumulative) Contractors, cooperating agencies and key actors Steps are defined as: identification, analysis, development, validation, promotion, training, adoption, implementation and enforcement. The term "clean and efficient energy production and use" is interpreted as "any market-oriented and sustainable generation process or appropriate end-use of energy that implies close-to-zero or less-than-zero emission of green house gases." Key actors may include the Ministry of Mines and Energy, PRODEEM, PROCEL, ESCOs, ABESCO, Energy Efficiency Agencies or Institutes, MME's Centers of Excellence and related universities, CEPEL, investor and power utilities, rural cooperatives, power permissionaires, NGOs, Renewable Energy Developers, ANEEL and State regulatory agencies, development and commercial banks and financial/investment institutions. Indicator 3: SO Number of key actors who have met 60 percent of their annual benchmarks (cumulative) Contractors, cooperating agencies and key actors. Indicator will be the number of key actors who have met in that year 60 percent of their annual benchmarks for adopting clean and efficient energy production and use. Key actors may include the Ministry of Mines and Energy, PRODEEM/MME, PROCEL/MME, Energy Service Companies, Brazilian National Association for Energy Service Companies (ABESCO), Energy Efficiency Agencies or Institutes, MME's Centers of Excellence and related universities, National Research Center for Power Research (CEPEL), investor and public owned power utilities (concessionaires), rural cooperatives, power permissionaires, NGOs, Renewable Energy Developers and their associations, ANEEL and selected State regulatory agencies, selected development and commercial banks and financial/investment institutions. The term "clean and efficient energy production and use" is interpreted as "any market-oriented and sustainable generation process or appropriate end-use of energy that implies close-to-zero or less-than-zero emission of green house gases." Indicator 4: IR Number of projects (cumulative) Project surveys, contractors, cooperating agencies and key actors. The indicator shows clean and efficient energy projects that are actually being implemented, which are funded by mechanisms created, leveraged or supported by USAID. Eligible projects will be any clean and efficient energy project funded by mechanisms created, leveraged or supported by USAID. Examples of types of "mechanisms" USAID plans to create/leverage/support to provide funding are: promotion of USAID's Development Credit Authority (DCA), technical assistance to the Brazilian Government on the preparation of loan requests, promotion of the developers' portion of cooperators cost-shares funds, etc. U.S. Financing
(In thousands of dollars)
Obligations Expenditures Unliquidated Through September 30, 1999 1,086 DA 200 DA 886 DA 0 CSD 0 CSD 0 CSD 0 ESF 0 ESF 0 ESF 0 SEED 0 SEED 0 SEED 0 FSA 0 FSA 0 FSA 0 DFA 0 DFA 0 DFA Fiscal Year 2000 1,150 DA 1,086 DA 0 CSD 0 CSD 0 ESF 0 ESF 0 SEED 0 SEED 0 FSA 0 FSA 0 DFA 0 DFA Through September 30, 2000 2,236 DA 1,286 DA 950 DA 0 CSD 0 CSD 0 CSD 0 ESF 0 ESF 0 ESF 0 SEED 0 SEED 0 SEED 0 FSA 0 FSA 0 FSA 0 DFA 0 DFA 0 DFA Prior Year Unobligated Funds 0 DA 0 CSD 0 ESF 0 SEED 0 FSA 0 DFA Planned Fiscal Year 2001 NOA 2,500 DA 0 CSD 0 ESF 0 SEED 0 FSA 0 DFA Total Planned Fiscal Year 2001 2,500 DA 0 CSD 0 ESF 0 SEED 0 FSA 0 DFA Future Obligations Est. Total Cost Proposed Fiscal Year 2002 NOA 1,000 DA 0 DA 5,736 DA 0 CSD 0 CSD 0 CSD 0 ESF 0 ESF 0 ESF 0 SEED 0 SEED 0 SEED 0 FSA 0 FSA 0 FSA 0 DFA 0 DFA 0 DFA
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Last Updated on: May 29, 2002 |
