Natural Gas Power Plants in the System Security Role—The Situation and Solutions in Brazil

Abstract

This study aims to apply a methodology to analyze the regulatory obstacles for the development of thermal power plants in a country. The study uses Brazil as an application case, although mostly of the findings can be useful to other countries. It also discusses other policies and actions by the government that may contribute to the growth of natural gas-fired power plants. Using deductive and comparative research methods, the first part of this method focuses on the stage of thermoelectric power generation in Brazil. The subsequent sections present the role of the integration of gas and electricity sectors, the main obstacles to the expansion of natural-gas power generation, how the country has deal with the expansion of natural-gas power generation, as well as how other obstacles has been faced. In raising the research question, when comparing the research results of selected countries, it should be noticed the impact that the experience and lessons elsewhere have had on policies formulation on Brazil. Our conclusions pointed out that adequate policies for the natural gas-electricity Brazilian market integration make advisable the unification of electricity and natural gas agencies. We recommended developing a mathematical model to support decision-making on natural gas and electricity integration.