That is the conclusion of the study “Energy Transition - How to Deal with the New Industry Governance and Regulatory Challenges," conducted as part of the EU-Brazil Energy Policy Dialogue.
The report provides a brief introduction to the topic of energy transition, highlighting the main challenges and opportunities and pointing out that there is no one single model to be followed. Moreover, it clarifies that, even though the process is clearly moving in one direction (decarbonisation, digitalisation, etc.), it does not follow a linear path in any country or region.
In fact, there are contradictions that need to be addressed by those seeking to go through the energy transition process. One example is the EU's desire to become the first climate-neutral continent by 2050, which is in direct opposition to the prolonged use of coal as an energy source in the name of social peace and territorial cohesion.
Similarly, in Brazil, the desire to maintain traditionally renewable energy sources clashes with the aspiration to use the electricity sector as an anchor for the natural gas industry, "driven" by the oil industry, an important driver of exports and the country's economy.
The study argues that the combination of strong and clear international commitments with domestic inconsistencies and even contradictions in public policy has led to tentative regulations, with little stimulus for energy transition, and few assertive regulatory policies.
Finally, the report encourages Brazil and the EU to deepen discussions on specific topics of common interest, such as systems with high renewable energy penetration; the formulation of clear policies and targets for the digitalisation of networks; best practices for concession agreements involving public power utilities; best practices for the promotion of energy efficiency in both the public and private sectors; and the adaptation of hydroelectric plants to more flexible systems, among others.
Joint press release - 8th EU-Brazil High Level Political Dialogue on the Environment Dimension of Sustainable Development on 16 October 2020 (virtual meeting)
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