Difference between revisions of "Energy Efficiency Program (PEE) in Brazil"

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This article informs about the Brazilian Energy Efficiency Program ''(port. Programa de Eficiência Energética - ''PEE) and the recent improvement of PEE´s regulatory framework. The Brazilian electricity regulation authority ANEEL (''port. Agência Nacional de Energia Elétrica'' - ANEEL''), ''competent supervising entity of the PEE, was supported by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH<ref name="GIZ">As a federal enterprise, the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH supports the federal German government in achieving its international cooperation objectives. Together, Brazil and Germany face global challenges such as preserving biodiversity and fighting climate change. The German Cooperation for Sustainable Development therefore operates primarily in two areas: Protection and sustainable management of Rain Forests as well as Renewable Energies and Energy Efficiency. Within the cooperation with the Brazilian partners GIZ provides advice on strategy development, support for developing management and cooperation structures, as well as technical expertise.</ref>. The new regulation entered into force on 2<sup>nd</sup> July 2013. &nbsp;
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= Introduction<br/> =
  
 
Energy efficiency policies still play a marginal role in Brazil. Vast energy saving potentials exists in many sectors, especially in the industry and commerce. Along with the residential sector, these are the most energy intensive sectors in Brazil. Since the beginning of the century, however, the country is gradually building a regulatory framework to develop such policies.
 
Energy efficiency policies still play a marginal role in Brazil. Vast energy saving potentials exists in many sectors, especially in the industry and commerce. Along with the residential sector, these are the most energy intensive sectors in Brazil. Since the beginning of the century, however, the country is gradually building a regulatory framework to develop such policies.
  
In 2000, the Brazilian government legally implemented the PEE under regulation and supervision of the Brazilian electricity regulation authority ANEEL (''port. Agência Nacional de Energia Elétrica'', ANEEL'')''. PEE demands the 100 electricity providers in the regulated energy market to spend 0.5 percent of their yearly net operating income in energy efficiency projects, which represents a total budget of approx. 120 Mio. Euro per year. This makes PEE the largest financial source for energy efficiency projects in Brazil. Between 2008 and 2012, most projects were implemented in the low <ref name="PROPEE">ANEEL 2013: Procedimentos do Programa de Eficiência Energética – PROPEE. Módulo 1 – Introdução. www.aneel.gov.br/arquivos/zip/PROPEEv1.zip (Retrieved on 1-8-2015)</ref>income household sector (62%). However, PEE resources could be applied in the sectors with the highest energy saving potentials in Brazil, like those in the industry. This aligns PEE with national energy efficiency goals and increases the program impacts. To address these potentials, a new regulation of PEE was introduced. More information about PEE can be found in the following power point presentation:
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In 2000, the Brazilian government legally implemented the PEE under regulation and supervision of the ANEEL. PEE demands the 100 electricity providers in the regulated energy market to spend 0.5 percent of their yearly net operating income in energy efficiency projects, which represents a total budget of approx. 120 Mio. Euro per year. This makes PEE the largest financial source for energy efficiency projects in Brazil. Between 2008 and 2012, most projects were implemented in the low <ref name="PROPEE">ANEEL 2013: Procedimentos do Programa de Eficiência Energética – PROPEE. Módulo 1 – Introdução. www.aneel.gov.br/arquivos/zip/PROPEEv1.zip (Retrieved on 1-8-2015)</ref>income household sector (62%). However, analysis conducted by ANEEL showed trends of declining returns of PEE resources, and that adjustments in the regulation were necessary.
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More information about PEE can be found in the following power point presentation:
  
 
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PROPEE, in force since 2<sup>nd</sup> July 2013<ref name="RESOLUÇÃO NORMATIVA Nº 556">RESOLUÇÃO NORMATIVA Nº 556, DE 18 DE JUNHO DE 2013: http://www.aneel.gov.br/cedoc/ren2013556.pdf (Retrieved on 12-15-2014)</ref>, describes the enhanced regulatory framework of PEE. It establishes eligibility criteria demanded by ANEEL and guidelines for the execution of energy efficiency projects in the context of the PEE. Projects selection procedures were also altered – under current rules, projects are proposed by the market, and those with higher cost benefit ratios are prioritized. The improved regulation is an output of the cooperation between ANEEL and GIZ, which provided technical advice during the whole improvement process.
 
PROPEE, in force since 2<sup>nd</sup> July 2013<ref name="RESOLUÇÃO NORMATIVA Nº 556">RESOLUÇÃO NORMATIVA Nº 556, DE 18 DE JUNHO DE 2013: http://www.aneel.gov.br/cedoc/ren2013556.pdf (Retrieved on 12-15-2014)</ref>, describes the enhanced regulatory framework of PEE. It establishes eligibility criteria demanded by ANEEL and guidelines for the execution of energy efficiency projects in the context of the PEE. Projects selection procedures were also altered – under current rules, projects are proposed by the market, and those with higher cost benefit ratios are prioritized. The improved regulation is an output of the cooperation between ANEEL and GIZ, which provided technical advice during the whole improvement process.
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Infosheet: New regulation for the Energy Efficiency Program - &nbsp;[[:File:Infoblatt_Neue_Regulierung_für_Energieeffizienzprogramm.pdf|Neue Regulierung für Energieeffizienzprogramm (2014)]]
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With the aim of improving the potential energy savings of PEE´s enormous financial potential and quality of PEE projects in all sectors, ANEEL, supported by GIZ, worked in the reformulation of its regulatory framework. The new regulation – “Procedures of the PEE” (''port. Procedimentos do Programa de Eficiência Energética - ''PROPEE) – transformed the PEE from a donation to an incentive program, with a focus on leveraging resources from third parties.
  
 
= References<br/> =
 
= References<br/> =
  
 
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Revision as of 18:37, 26 March 2015

Overview

This article informs about the Brazilian Energy Efficiency Program (port. Programa de Eficiência Energética - PEE) and the recent improvement of PEE´s regulatory framework. The Brazilian electricity regulation authority ANEEL (port. Agência Nacional de Energia Elétrica - ANEEL), competent supervising entity of the PEE, was supported by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH[1]. The new regulation entered into force on 2nd July 2013.  

Introduction

Energy efficiency policies still play a marginal role in Brazil. Vast energy saving potentials exists in many sectors, especially in the industry and commerce. Along with the residential sector, these are the most energy intensive sectors in Brazil. Since the beginning of the century, however, the country is gradually building a regulatory framework to develop such policies.

In 2000, the Brazilian government legally implemented the PEE under regulation and supervision of the ANEEL. PEE demands the 100 electricity providers in the regulated energy market to spend 0.5 percent of their yearly net operating income in energy efficiency projects, which represents a total budget of approx. 120 Mio. Euro per year. This makes PEE the largest financial source for energy efficiency projects in Brazil. Between 2008 and 2012, most projects were implemented in the low [2]income household sector (62%). However, analysis conducted by ANEEL showed trends of declining returns of PEE resources, and that adjustments in the regulation were necessary.

More information about PEE can be found in the following power point presentation:


Numbers and Facts Energy Efficieny Program - Procedimentos do Programa de Eficiência Energética Regulado pela ANEEL - PROPEE (2012)


Enhanced regulatory framework

New regulatory framework of PEE - Procedimentos do Programa de Eficiência Energética - PROPEE (2013)

PROPEE, in force since 2nd July 2013[3], describes the enhanced regulatory framework of PEE. It establishes eligibility criteria demanded by ANEEL and guidelines for the execution of energy efficiency projects in the context of the PEE. Projects selection procedures were also altered – under current rules, projects are proposed by the market, and those with higher cost benefit ratios are prioritized. The improved regulation is an output of the cooperation between ANEEL and GIZ, which provided technical advice during the whole improvement process.


Infosheet: New regulation for the Energy Efficiency Program -  Neue Regulierung für Energieeffizienzprogramm (2014)

With the aim of improving the potential energy savings of PEE´s enormous financial potential and quality of PEE projects in all sectors, ANEEL, supported by GIZ, worked in the reformulation of its regulatory framework. The new regulation – “Procedures of the PEE” (port. Procedimentos do Programa de Eficiência Energética - PROPEE) – transformed the PEE from a donation to an incentive program, with a focus on leveraging resources from third parties.

References

  1. As a federal enterprise, the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH supports the federal German government in achieving its international cooperation objectives. Together, Brazil and Germany face global challenges such as preserving biodiversity and fighting climate change. The German Cooperation for Sustainable Development therefore operates primarily in two areas: Protection and sustainable management of Rain Forests as well as Renewable Energies and Energy Efficiency. Within the cooperation with the Brazilian partners GIZ provides advice on strategy development, support for developing management and cooperation structures, as well as technical expertise.
  2. ANEEL 2013: Procedimentos do Programa de Eficiência Energética – PROPEE. Módulo 1 – Introdução. www.aneel.gov.br/arquivos/zip/PROPEEv1.zip (Retrieved on 1-8-2015)
  3. RESOLUÇÃO NORMATIVA Nº 556, DE 18 DE JUNHO DE 2013: http://www.aneel.gov.br/cedoc/ren2013556.pdf (Retrieved on 12-15-2014)