Brazil could attract R$500 billion in investments in alternative sources

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Energy recovery from waste is a reality in many countries around the world, but in Brazil this potential is little explored, mainly due to the lack of regulations that favor this type of energy use.

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According to ABREN (Brazilian Association for Energy Recovery from Waste), the biogas, biomethane and waste-to-energy have the potential to attract R$500 billion in investments in the coming years in Brazil. However, without regulatory incentives, the country will continue to landfill waste, warns the association.

ABREN, led by its executive president Yuri Schmitke, advocates the inclusion of waste energy recovery in the capacity auctions scheduled for this year, as well as the approval of the PNRE (National Waste Energy Recovery Program)

In 2024, the association contributed with the suggestion of amendments to PATEN (Energy Transition Acceleration Program) to include energy recovery from waste in the program, but without success. 

The measure sought to establish a unified contracting desk for waste-to-energy plants, so that the municipality could bid through a concession contract linked to the guarantee of sale of electricity to the Union, with the amount allocated in the form of reserve capacity energy.

The objective is to meet the goals of PLANARES (National Solid Waste Plan), which foresees the contracting of 994 MW of installed capacity for energy recovery, 252 MW of installed capacity for landfill gas (biogas) and 69 MW of installed capacity for anaerobic biodigestion (biogas) by 2040, with an average of 87 MW per month. In essence, the proposal aims to indicate a path for Brazil to comply with the guidelines established by Planares itself.

“If these 994 MW are implemented, we are talking about an investment of R$54,67 billion. It is worth noting that, according to the WHO (World Health Organization), for every R$1 invested in sanitation, R$4 are saved in public health,” highlights Schmitke.

Plant costs

The association highlights that, in addition to the regulatory context, there are different financing possibilities for these technologies. 

The cost of the energy generated depends on factors such as the calorific value of the urban solid waste (MSW), the quality of the materials, the size of the plant and the amount paid by the municipality for the final disposal of the waste.

Currently, the average fee paid to landfills is around R$140,00 per ton of MSW. Considering this value, a small plant would need a maximum fee of R$750,00/MWh, according to ABREN calculations. However, an adjustment in the waste fee, combined with good calorific value conditions and a larger plant, could reduce this value to R$500,00/MWh or less. 

In the case of biogas plants, prices are even lower, ranging from R$300,00 to R$440,00/MWh. For anaerobic biodigestion of MSW, prices range from R$600,00 to R$781,00/MWh.

Furthermore, at least 20% of the thermal energy generation dispatched by the ONS (National Electric System Operator) comes from fossil fuel plants that operate at costs above R$750,00/MWh, reaching, in some cases, R$3.000,00/MWh.

 

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Photo by Wagner Freire
Wagner Freire
Wagner Freire is a journalist graduated from FMU. He worked as a reporter for Jornal da Energia, Canal Energy and Agência Estado. Covering the electricity sector since 2011. Has experience in covering events such as energy auctions, conventions, lectures, fairs, congresses and seminars.

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