Electricity generation : regulatory mechanisms to incentive renewable alternative energy sources in Brazil

Until recently, environmental benefits proved the strongest incentive to exploit renewable electricity sources in Brazil. With the electricity crisis and the rationing imposed in 2001, the need to diversity energy sources became apparent and regulatory mechanisms were adopted to further stimulate power generation from renewable sources. The experiences of the UK, US, and Germany with regulatory tools for the promotion of renewables are surveyed, noting that these nations have increased participation of renewable energy sources in the electricity mix either by use of subsidies or by incentives. Implications for formulating similar policies in Brazil are discussed.