Comercialitation of bioelectricity in the free contracting environment by the sugar cane mills of the sugar-energy sector from the region of Ribeirão Preto: scenery and analysis of opportunities e threats

Author(s)

Iraci de Souza João

• Document type: Master's Dissertation
• Press: Ribeirão Preto.
• Institution: Universidade de São Paulo (USP). Faculdade de Economia, Administração e Contabilidade de Ribeirão Preto (PCARP/BC)
• Defense date: 2010-02-24

Examining board members

Edgard Monforte Merlo; Viviana Giampaoli; Marcos Fernando Lopes

• Advisor: Edgard Monforte Merlo

Abstract

In recent years, the Brazilian electricity market has gone through provision crises, due to the greater increase in demand with regard to supplies. Resulting from the lack of infrastructural investments and the concentration of the energy matrix in hydroelectricity, this scenario can be minimized by the bioelectricity coproduced based on sugar cane pulp. However, the effective exploration of its potential depends on sugar cane mills acknowledging it as a viable and profitable product. This research aimed to characterize bioelectricity commerce in a Free Contracting Environment (ACL) and compare it with a Regulated Contracting Environment (ACR), identifying the threats, opportunities, strong and weak points of each. Interviews were held with managers: of four sugar-electricity mills, the local energy distributor and a free consumer. Data were processed using SWOT and PEST analysis, as well as content and correspondence analysis techniques. The results indicated that the main advantage of ACR is security about energy prices, while the disadvantage is the contracts lack of flexibility, in combination with high penalties. The relevant strong point of ACL is the flexibility to define term, price and quantity, and the weakness is price volatility. Due to these characteristics, agents tend to act in both markets, adopting the market as the main governance structure and hybrid forms at a secondary level. Government action is needed to encourage renewable energy sources and provide solutions to bottlenecks like connection with the transmission network, weakness of both markets and lack of an adequate trading environment. (AU)

• FAPESP's process: 08/08983-5 - ANALYSIS OF TRADING OF BIOELETRICIDADE IN RETAIL: A STUDY OF PROGRESS OF THE SUGAR CANE INDUSTRY DOWNSTREAM OF AGRICHAIN.
• Grantee: Iraci de Souza João Roland
• Support Opportunities: Scholarships in Brazil - Master