Proposal to improve the regulatory framework of the Brazilian free energy market with a focus on sugar-energy bioelectricity

Abstract

Purpose

Bioelectricity from sugarcane presents possibilities of gaining prominence as an energy source in the coming years, contributing to sustainable development and being a relevant pillar of Brazil’s energy matrix, based on its advantages and the measures that can stimulate it. The purpose of this study is to contribute to a new framework for improving the regulatory framework for Brazilian sugarcane bioelectricity that facilitates the governance of its stakeholders and their respective relationships.

Design/methodology/approach

Exploratory and qualitative research, adopting, in addition to theoretical and practical research, consultations with experts, combined with analysis of documents relating to sustainability reports released by companies in the sector.

Findings

In the observed reports of 23 companies, it was found that 14 give full relevance to bagasse energy, and it can be attested that sugar-energy bioelectricity includes social, economic and environmental dimensions. In addition, the work presented elements that can benefit cogeneration, such as reduction or exemption of the distribution system use tariff for energy generation from bagasse; freedom for full commercialization in the free energy market, including small consumers; contractual simplification and solidification of financial compensation for clean energy production.

Originality/value

The work contributes to the advancement of theoretical references of business economics and competitiveness for practical application in competitive sustainability environments.

Citation

Ronquim Filho, A., Cezarino, L.O. and Ferraresi de Araujo, G.J. (2024), "Proposal to improve the regulatory framework of the Brazilian free energy market with a focus on sugar-energy bioelectricity", International Journal of Energy Sector Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJESM-12-2023-0025