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A Study of Solar PV Potentials to Ensure Reliable Supply of Affordable Electricity in Favelas, Rio de Janeiro, Brazil

  • With a rapidly growing population and urbanization, most modern slums (favelas) also proliferated in Brazil since the 1950s when many people left rural areas of Brazil and moved into the cities. Rio de Janeiro is one of those cities having a vast amount of favelas with poor living conditions. One of the main problems of electricity supply in favelas is illegal electricity use, called ‘Gato’ in Portuguese. Recent unexpected severe drought, economic crisis, and rapidly increased electricity price in Brazil affected the reliable supply of affordable electricity in favelas. Considering abundant solar radiation of the country and the government’s willingness trying to shift the framework of energy supply from hydropower to renewable energy, this study analyzes the solar PV potentials to ensure a reliable supply of affordable electricity in favelas in Rio de Janeiro. Literature reviews regarding solar PV development in Brazil, energy policy analysis in Brazil and electricity issues in favelas are revised. As a case study, the chosen favela ‘Babilônia’ is presented. The survey analysis about electricity consumption situation with social dimension targeting residences in Babilônia is implemented. Lastly, through economic analyses with cost-benefit calculation such as Internal Rate of Return (IRR), Net Present Value (NPV), Discounted Cash Flow, Payback period, Capital Asset Pricing Model (CAPM) and Weighted-Average Cost of Capital (WACC) models, this study develops the possible financing alternatives to implement a solar PV project with different scenario analyses in the current solar PV market and solar energy policy of Brazil. The results of this study can be used as an aid to comprehend the electricity supply issue of the most vulnerable class in Brazil and the solar PV as a solution.

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Author:Boram Moon
Document Type:Master's Thesis
Publishing Institution:Hochschulbibliothek der Technischen Hochschule Köln
Granting Institution:Technische Hochschule Köln
Date of Publication (online):2018/10/01
GND-Keyword:Brasilien; Erneuerbare Energien; Rio de Janeiro; Slum; Sonnenenergie
Tag:Electricity supply; Electricity theft; Favela; Solar PV; Solar energy
Page Number:145
Institutes:Fakultät für Raumentwicklung und Infrastruktursysteme (F12) / Fakultät 12 / Institut für Technologie und Ressourcenmanagement in den Tropen und Subtropen
Dewey Decimal Classification:500 Naturwissenschaften und Mathematik / 500 Naturwissenschaften
Open Access:Open Access
Licence (German):License LogoCreative Commons - CC BY - Namensnennung 4.0 International