The Brazilian government has unveiled a plan to decarbonize the Amazon region by replacing diesel-based thermoelectric power plants with solar panels and biodiesel for energy generation.
Minister of Mines and Energy, Alexandre Silveira, stated that the project will require investments of R$5 billion (US$1 billion) and aims to reduce the consumption of energy generated by diesel thermoelectric plants in the region to 40 percent by 2026.
Silveira further noted that by 2030, only 20 percent of the energy consumed in the Amazon region will be generated by oil-fired thermoelectric plants.
During a forum with business leaders, Silveira stated, “We are taking it a step further by transitioning to solar and biodiesel energy.
By 2026, only 40 percent of the Amazon region will rely on oil-based energy.”
Brazil has over 200 isolated systems that are not connected to the national electricity grid.
These systems are predominantly powered by diesel-burning plants, which are more expensive and environmentally polluting than hydroelectric power plants.
The Energy Development Account (EDC), funded by consumers, subsidizes and covers the cost of procuring fuel for these isolated systems.
As of June, the Conta de Consumo de Combustibles (CCC), which finances fuel for isolated systems, has amounted to R$3.8 billion (approximately US$760 million).
The National Electric Energy Agency (Aneel) projects the total expenses for the year to reach around R$12 billion (US$2.4 billion).