Influence of public policies on the diffusion of wind and solar PV sources in Brazil and the possible effects of COVID-19

Abstract

Renewable energy is crucial to achieving carbon neutrality and supporting sustainable development, but its success depends on effective policies. This study aims to evaluate public policies and their influences on the use and diffusion of wind and solar PV into the Brazilian electricity grid and to understand if, and how, the two renewable sources could be affected by the post-COVID-19 pandemic scenario. This work plays an important role in the decarbonization of the electricity sector, highlights the need to modernize the Brazilian industrial park, and addresses new barriers to the development of renewable sources in the country. To carry out the analysis and answer the research questions, a mixed methodological approach was adopted covering the quantitative and qualitative aspects, led by a rigorous systematic review of the literature and semi-structured interviews with Brazilian stakeholders. The results revealed that 1/4 of the policies, characterized by socio-economic drives, were responsible for the growth of the share of wind and solar PV supply in the electrical mix, contributing to the decarbonization of the Brazilian energy mix. The results also suggest that new policies will be needed to ensure a greater presence of both sources in the electricity mix. The findings of the study reveal unpublished and valuable information capable of supporting policymakers and stakeholders in the diffusion of renewable sources. Further studies are needed to highlight other aspects, such as the need to modernize the “distribution” network and storage system for renewable technologies.