Regulatory Pathways for the Decentralisation of the Brazilian Electricity System

Traditional electricity systems were built upon largely predominant centralised models. The growing energy demand and economic and environmental factors have led to the decentralisation of the electricity mix. Distributed generation is one of the main approaches to meeting a decentralised electricity system, and this book chapter investigates if distributed generation can be a vector of decentralisation of the Brazilian electricity supply. To carry out the analysis, the regulatory framework of the distributed generation market in Brazil based on the electricity regulator’s (ANEEL) normative and government incentives from 2004 to the present day is presented. The results revealed that former policies were responsible for the growth of distributed generation in the electrical mix and also suggested that new policies will be needed to ensure distributed generation's growth sustainability in the long term.