The Role of the Renewable Energy Program in the State of Minas Gerais in the Process of Renewable Sources Expansion

Abstract

 The State of Minas Gerais (MG), in Brazil, has significant potential for the exploration of renewable energy, with emphasis on solar, wind and biomass. Since 2013, the State has created the Renewable Energy Program of Minas Gerais – PMER (in Portuguese), aiming the acceleration of the expansion of these renewable sources in the State’s territory. Nonetheless, the use of renewable sources, excluding large hydropower plants, is still irrelevant in the energy matrix of the State. In this way, the present paper aims to perform an effectiveness analysis of the only instrument of the State Government to expand the number of renewable energy projects, and its contribution to achieve the goals of the energy sector of the Brazilian Nationally Determined Contributions – NDCs. In order to do that, the following parameters has been measured: (1) numbers of projects implemented by the program; (2) policy innovation; (3) job creation; (4) climate change mitigation. It is also briefly discussed the efforts of the Program to address actions that promotes energy storage and the needed infrastructure to supply the energy demand through renewable energy only. There is evidence that the expansion of the renewable energy sources at the regional scope has advanced through incentive policies with clearly defined goals and guidelines. However, the five indicators have shown that the PMER does not attend all the requisites in a satisfactory way to perform as the main state public policy of renewable energy expansion. Therefore, promoting a transformation of the energy sector suggests that a balanced mix of public policies must be implemented in the State.