PRODEEM (Program for Energy Development of States and Municipalities), a Brazil government agency,
is charged with supplying renewable energy to the 20 million rural inhabitants without access to
grid power(about 15% of Brazil’s total population). About 20,000 MW of power are needed. The price
tag – about $25 billion. With the assistance of the Inter-American Development Bank, PRODEEM will
create market mechanisms to stimulate the private sector to provide off-grid renewable energy services.
200 rural renewable energy systems were installed in 1997; 2,000 in 1998. With IDB’s technical assistance,
they plan to increase the number of annual installations to 10,000. Each system serves about 200 people.
Non-grid connected households, small businesses, farms, and community or social end-users (health clinics,
churches, schools and community centers) provide a solid base of customers with a considerable range of
energy requirements suitable for renewable energy stand-alone systems. Solar, wind and biomass are the
priorities for energy sources.
The effort is part of a new Brazilian energy policy that emphasizes efficiency, diversity of energy
sources, private sector incentives, and ensuring energy access for every Brazilian citizen.
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