Energy Transition

The energy transition is essential to limit global warming to 1.5 degrees Celsius, requiring the expansion of renewable energies and the reduction of fossil fuels, in addition to bringing economic and social benefits, including job creation and gender equity.

Scientists around the world warn: global warming of 1.5 degrees Celsius above the pre-industrial period could have serious consequences, including food insecurity and the disappearance of species. The increase in temperature is impacted by greenhouse gas (GHG) emissions, mainly carbon dioxide (CO2) and methane, from activities such as the extraction and production of fossil fuels - oil, coal and natural gas. This means that, from consuming plastic to burning coal to generate electricity, the habits of people and businesses can contribute to climate change.

However, the Intergovernmental Panel on Climate Change (IPCC) reinforced in its most recent report on mitigations, published in April 2022, that despite the In a tragic scenario, it is still possible to halve emissions by 2030. The energy sector is most responsible for global emissions, so it is necessary for governments, companies, and civil society organizations to act to promote more sustainable policies in this market.

What is energy transition?

The expansion of energy from renewable sources and the reduction in the use of fossil fuels, in addition to the focus on energy efficiency and investments in technology, are the basis for the low-carbon energy transition. This is a concept that seeks to transform the energy matrix towards less polluting solutions.

The IPCC guidelines also include increasing access to electricity by all people and the use of alternative fuels, such as blue or green hydrogen. Other possibilities that have been adopted are energy storage and initiatives to remove or offset carbon emitted, including carbon capture or market negotiations.

How should the energy transition take place?

The IPCC proposal, in the report on mitigations, includes three routes for the expansion of sustainable energy:

Decarbonize primary energy and electricity generation;

Expand the use of electricity, bioenergy, hydrogen, and other fuels produced
from low-carbon sources;

Limit energy use by improving efficiency and conservation.

This process has benefits such as stimulating the creation of a new economy and the generation of jobs. According to the International Labor Organization (ILO), measures for a more sustainable energy sector could bring net gains of approximately 24 million jobs by 2030. In addition, renewable energies bring a scenario with more income and gender equity; according to the International Renewable Energy Agency (IRENA), women account for a third of jobs in renewables, a better scenario than in oil and gas.

What is a just energy transition?

A just transition is a need recognized by several international organizations and provides, according to the IPCC, for the adoption of measures to ensure that the impacts caused by changes in energy technologies are minimized and that the benefits are expanded. Eradicating poverty, regulating prosperity and creating jobs in sectors considered green are some of the main topics. Actions must consider local possibilities and may be aligned with the SDGs.

Energy transition in Brazil

In Brazil, the electricity and energy matrices have a greater share of clean and renewable sources than in the rest of the world - while in the country 46% of energy comes from these sources, globally this percentage drops to 14%; considering electricity, they are 83% and 27%, respectively. The main national source is water, which accounts for more than half of the country's installed capacity, followed by wind power.

The Energy Research Company (EPE), responsible for the studies that support the planning of the sector in Brazil, affirms that one of the country's greatest challenges is the transportation sector. Initiatives to reduce emissions include encouraging the use of biofuels, such as ethanol (obtained from sugarcane juice) and biodiesel (from vegetable oils), and electric vehicles.

Neoenergy's role in Brazil's energy transition

Neoenergy's strategy and business model were designed in anticipation of the role that the electricity sector can play in combating climate change and in creating opportunities for economic, social and environmental development. The company is a pioneer in the national energy transition and is committed to leading this process, prioritizing decarbonization, decentralization and digitization of networks.

Neoenergy started operating its first wind complex in 2006, one of the first in Brazil. The supply of renewable energy is the focus of the company, which has, between assets in operation and under construction, 44 wind farms, seven hydroelectric plants and two solar parks. The company is investing in new generation models, promoting offshore wind and green hydrogen projects in states such as Rio Grande do Sul, Rio de Janeiro and Pernambuco.

The company also encourages innovation through its Research and Development (R&D) program, regulated by the National Electric Energy Agency (ANEEL). Among the projects are the installation of microgrids to supply an isolated community in the interior of Bahia. In terms of electric mobility, the installation of the Green Corridor, an electroroad that provides charging infrastructure in 1,200 kilometers between Bahia and Rio Grande do Norte, and the Green Trail, an initiative to promote environmentally sustainable applications for the island of Fernando de Noronha (PE), stands out.