This study examines the role of renewable energy in Brazil’s electricity grid and compares the different methods of awarding renewable energy contracts. Renewable energy development is of utmost importance in Brazil, not only to counter future supply shortages but also to maintain the employment of more than 918,000 people, who work either directly or indirectly in renewable energy (IRENA, 2016). It is important to quantitatively calculate the efficiency of both the FIT and the renewable energy auctions, in order to better understand the costs and benefits of emission abatement in Brazil.
Awarding electricity generation procurement contracts through auctions has become increasingly popular over the past decade. This study focuses on Brazil’s introduction of auctions and the changes in electricity worker wages during the same time period.