Not only must Brazil take the lead in the production of green energy, but it is also on the way to becoming a safe haven for investors, with the potential to become an exporter of clean energy. This is the opinion of Marina Rossi (photo), director of Energy Development at the Ministry of Mines and Energy (MME) on one of the issues that should be highlighted during the 27th United Nations Climate Change Conference in 2022 (COP27), which began on Sunday, in the spa of Sharm El Sheikh, in Egypt, with great expectations about Brazil's role in fundamental issues such as the energy transition and the construction of a future based on green energy.

According to her, the potential for producing wind energy off the coast, for example, can transform Brazil into an exporter of clean energy. "There is great generation potential to be used in the production of hydrogen for export. Thus, as Brazil plays a prominent role in global food production, we can also become a major exporter of clean energy," she says.

The exploitation of offshore wind energy is in the regulatory phase. "Our priority is to cherish the security of this investment, so that it is effective in promoting economic growth, always with clear rules and legal certainty, without giving up speed and less bureaucracy."

In an interview, Marina also spoke about energy security, the challenges to neutralize emissions in the generation of energy produced from fossil fuels.

Brazil has been increasingly seen as a leader in the debate on the energy transition in the world. But conducting this transition presupposes increasing the presence of clean energy sources, maintaining energy security and stability of the industrial system, at the stage it is today. How does this equation close?

Marina Rossi: Brazil is a protagonist in the global energy transition. Our matrices are among the cleanest on the planet. To give you an idea, we expect that by the end of 2022, almost 47% of our energy and 85% of our electricity supply will come from renewable sources. These percentages are three times higher than the world average.

This panorama was established by the use of the country's abundant water resources, combined with incentives for the diversification of sources. This level was also strengthened by the interconnection of the various Brazilian regions, to ensure greater energy security, since our matrix - predominantly hydraulic - has always been impacted by climatic effects. In addition, since the 1970s, Brazil has been striving to reduce dependence on oil derivatives in the transport sector, having been a pioneer in creating policies for the use of biofuels at competitive costs.

As this whole process was built in a structured way, Brazil managed to achieve an increasingly smaller dependence on imports of oil and derivatives, in addition to achieving high levels of energy security. As a result, the country has been moving towards a marked expansion of the free market, in which the supply of renewable sources is predominant. To address systemic security, especially considering the variability of renewable sources, capacity reserve auctions were developed in 2021.

In conjunction with the Energy Research Company (EPE), the National Electric System Operator (ONS) and industry participants, the Ministry of Mines and Energy (MME) is working to develop the capacity market, allowing agents to also contribute for systemic need for power and energy.

There is still a challenge to neutralize emissions in energy generation from fossil fuels. What has been concretely done in this regard?

Marina Rossi: The country already has fronts for neutralizing emissions in activities. Relevant examples of this are the Decarbonization Credits (CBIOs), generated under the Renovabio Program. The institution of the program was an important step and the MME is always looking to improve it. Another advance was the publication of Decree No. 11,705/2022, which takes another step towards structuring a carbon credit market.

In addition, it is always important to point out that maintaining a renewable profile in the electricity matrix is ​​already a great achievement for Brazil in terms of carbon neutrality, as the country currently emits 33% less than the Organization for Cooperation and Development bloc. Economic Development (OECD) and 37% less than the world in terms of energy use.

All this already considering the panorama of 2021, when we had an increase in thermoelectric generation due to the greatest water scarcity in history. Furthermore, it should be noted that, while in several countries, electricity generation is responsible for most of the greenhouse gas (GHG) emissions, in Brazil it corresponds to only 16.5% of the total. And, even in a favorable and privileged context, we have intensified actions in the carbon-intensive sectors, ensuring the construction of a carbon market, at the same time that we have an extremely renewable electricity matrix.

Brazil also has enormous potential for generating offshore wind energy, a source that has been extensively explored by countries such as China, for example, the leader today in the production of energy generated by wind on the high seas. There is an expectation that, with the publication of Decree 10.946/2022, in the regulatory phase, progress will be made in 2023. What are the challenges for this implementation in Brazil?

Marina Rossi: After the publication of Decree nº 10.946/2022, the MME published two ordinances on offshore energy generation. The first was nº 52/2022, with complementary guidelines to the Decree. The second was the interministerial MMA/MME nº 3/2022, created for the development of a single portal for managing areas and requests in partnership with the National Electric Energy Agency (Aneel) and other institutions involved.

One of the main challenges is to design an organized regulatory framework, adhering to the needs and particularities of this size of enterprise, avoiding the existence of obstacles to the adaptation of the port structure and in the supply chain. We believe that it will be a challenge to absorb the energy to be generated, considering the expected expansion of the load and the expansion of the offer of other competitive renewable sources in the country. In this sense, there is a great generation potential to be used in the production of hydrogen for export. Thus, as Brazil plays a leading role in global food production, we can also become a major exporter of clean energy.

With the advancement of regulation, it will be possible for entrepreneurs to develop studies that show more detailed characteristics of offshore energy generation in the Brazilian sea. In this way, the attributes of this source can be identified and how they can contribute to energy supply and systemic security. This sector should generate attractiveness for private investment, with national and international capital. Our priority is to cherish the security of this investment, so that it is effective in promoting economic growth, always with clear rules and legal certainty, without giving up speed and less bureaucracy.

One of the focuses of COP27, which starts next week, is green energy, the theme of one of the pavilions that Brazil will present at the conference. Is there, in this sense, an opportunity for the country to be considered a focus for foreign investment in this scenario?

Marina Rossi: The MME's work translates into building consensus among the various entities participating in the energy sector, aiming at consolidating Brazil as a safe haven for investments, ensuring that the country is at the forefront of the green energy sector.

We recently created the National Hydrogen Program (PNH2), with the first steps in the generation and promotion of low-carbon hydrogen as an energy vector in the country. This program represents a great opportunity to invest and participate in market design in one of the most promising nations in the world. Brazil, in addition to having a highly renewable matrix, essential for the production of low carbon hydrogen, has significant resources not yet explored, including photovoltaic and wind generation potential, both onshore and offshore.

National distributed generation (DG), mostly photovoltaic, has grown at high levels, with a tendency to increase by more than 80% this year, ensuring a solid environment for investors.

In addition, we recently regulated Decree No. 10,946/2022, referring to the use of natural resources to generate electricity in an offshore environment. Several companies have signaled interest in Brazil's potential, ensuring that the measures adopted are the beginning of yet another Brazilian role in the energy issue.

Thus, we hope to attract more and more investments in green energy, contributing to the strengthening of climate change mitigation actions and ensuring access to clean, safe and cheap energy for Brazilians.