Environmental Licensing for Hydroelectric Projects in Brazil : A Contribution to the Debate

This study points out that hydroelectric plants will continue to play a prominent role in the Brazilian electric matrix. A significant portion of the potential hydroelectric plants of the country is located in the Amazon, environmentally sensitive region. The licensing of hydroelectric projects in Brazil is considered a major obstacle for the expanding the capacity of generating electricity. The non-expansion, in turn, represents a serious threat to economic growth. This study, designed as a contribution to the debate in progress about the subject, examines the legal and institutional milestones of the environmental licensing of hydroelectric ventures, including studies of selected cases, an assessment of transaction costs of the processes and a comparison with international practices. Two conclusions emerge from this study. The first is that the costs of dealing with environmental issues and social development of enterprises hydroelectric in Brazil represent 12 percent of the total cost of the work. And the second is that costs of taxes, in general, the contractual and regulatory uncertainty, excluding the licensing environmental, represent about 7.5 percent of the total cost. In other words, the conclusion is clear: the environmental and social costs can be easily integrated. This study does not suggest radical changes to the system of environmental licensing. Any reform of the Brazilian environmental licensing can not be dealt with based on a single, simple solution. Rather, the system is complex and multifaceted, with a long legal and institutional history. A process of broad national discussion on the energy issue and its implications for environmental goods of the country is essential and is already in progress.

Bibliographic Details

Main Author:	World Bank
Language:	English en_US
Published:	Washington, DC 2008-03-28
Subjects:	ALTERNATIVE ENERGY, APPROACH, BASIN, BASIN MANAGEMENT, BASIN PLANNING, BASIN WATER, BASIN WATER RESOURCES, BIOLOGICAL DIVERSITY, BUFFER ZONE, CAPACITY BUILDING, CARBON, COAL, CONCEPTUAL FRAMEWORK, CONSTRUCTION COSTS, CONSTRUCTION OF DAMS, CULTURAL HERITAGE, DAM, DAM CONSTRUCTION, DAMS, DEMAND FOR ELECTRICITY, DIESEL, DIESEL OIL, DISPUTE RESOLUTION, ECOLOGY, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, ECONOMICS, ELECTRICITY, ELECTRICITY DEMAND, ELECTRICITY GENERATION, ELECTRICITY GENERATION CAPACITY, ELECTRICITY SUPPLY, EMPLOYMENT, ENERGY ALTERNATIVES, ENERGY CONSERVATION, ENERGY CONSUMPTION, ENERGY COSTS, ENERGY DEMAND, ENERGY GENERATION, ENERGY PRICES, ENERGY PRODUCTION, ENERGY SHORTAGE, ENERGY SOURCES, ENERGY SUPPLY, ENVIRONMENTAL, ENVIRONMENTAL ASPECTS, ENVIRONMENTAL ASSESSMENT, ENVIRONMENTAL CONCERNS, ENVIRONMENTAL CONSERVATION, ENVIRONMENTAL COSTS, ENVIRONMENTAL EXPERTS, ENVIRONMENTAL IMPACT, ENVIRONMENTAL IMPACT ASSESSMENT, ENVIRONMENTAL IMPACT ASSESSMENTS, ENVIRONMENTAL IMPACTS, ENVIRONMENTAL INFORMATION, ENVIRONMENTAL ISSUES, ENVIRONMENTAL MANAGEMENT, ENVIRONMENTAL POLICY, ENVIRONMENTAL PROBLEMS, ENVIRONMENTAL QUALITY, EXPENDITURES, FISHING, GENERATING CAPACITY, GLOBAL WARMING, HEADS, HYDRO DEVELOPMENT, HYDRO DEVELOPMENTS, HYDRO ENERGY, HYDRO PLANTS, HYDROELECTRIC PROJECTS, HYDROGRAPHIC BASIN, HYDROGRAPHIC BASINS, HYDROPOWER, HYDROPOWER DEVELOPMENT, HYDROPOWER DEVELOPMENT PROJECTS, HYDROPOWER DEVELOPMENTS, HYDROPOWER PLANT, HYDROPOWER PLANTS, HYDROPOWER POTENTIAL, HYDROPOWER PROJECT, HYDROPOWER PROJECTS, HYDROPOWER SECTOR, INDIGENOUS PEOPLES, INVENTORIES, LARGE HYDROPOWER, LEGISLATION, LOCAL COMMUNITIES, MARGINAL COSTS, MINES, MITIGATION MEASURES, NATURAL GAS, NUCLEAR ENERGY, OIL, OPPORTUNITY COSTS, ORCHARDS, PIPELINE, POLLUTION, POTENTIAL INVESTORS, POWER, POWER GENERATION, POWER PLANTS, PRECAUTIONARY PRINCIPLE, PUBLIC GOOD, PUBLIC PARTICIPATION, QUOTAS, RENEWABLE ENERGY, RENEWABLE RESOURCES, RESERVOIRS, RESETTLEMENT, RIVER, RIVER BASIN, RIVER BASIN LEVEL, RIVER BASIN PLAN, RIVER BASINS, SOCIAL PARTICIPATION, THERMAL CAPACITY, THERMAL ENERGY, THERMAL PLANTS, THERMAL POWER, THERMAL POWER PLANTS, TRANSACTION COSTS, TRANSMISSION GRID, WATER COURSES, WATERSHED,
Online Access:	http://documents.worldbank.org/curated/en/2008/03/10155469/environmental-licensing-hydroelectric-projects-brazil-contribution-debate-vol-1-3-summary-report https://hdl.handle.net/10986/7854
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