Institutional and Legal Framework of the Brazilian Energy Market: Biomass as a Sustainable Alternative for Brazilian Agribusiness

Abstract

The present article discusses the institutional model adopted in Brazil regarding energy production through biomass. The utilization of renewable energy and clean sources of energy is a characteristic of Brazil’s energy matrix. Recently, the production of energy through biogas—and biomass in general—started to gain force. The concessionaires of energy, as well, started to discipline its utilization and selling, creating an impediment to the commercialization of energy produced by micro or mini generation outside the free energy market, as well as a prohibition of binding the contracts to the value of electric energy. Even though, it is possible to create a network of contracts that interconnect the producers and the consumers. In this line, the theoretical-empirical method was used to conclude that the model’s di culties—and specially the legal limitations—can be overcome by adopting a network of contracts capable of subjecting renewable energy generation to an energy compensation model.