Table 6

Summary of the main barriers to the expansion of wind energy in Brazil.

Specific Barrier Solution Classification Complexity
Lack of information and knowledge Development of a private database. Wind Sector Low
High transaction costs Government should invest in upgrading and building efficient power transmission system and Coordination between new wind farms auctions and new transmission lines construction. Brazil High
Favoring conventional energy (subsidies) Eliminate subsidies to conventional energy sources Brazil Medium
Non-accountability of externalities Increase subsides to Renewable Energy to encourage investments and stimulate growth. Brazil Medium
High initial capital cost Provide Investment in R&D for wind energy and get financing from green funds (lower interest rates) Wind Sector Medium
Unstable macroeconomic environment Monitor the exchange rate variation and choose the best time to buy foreign devices. Brazil High
Lack of legal regulatory framework Reduce Bureaucracy in the licensing process in Brazil −should be an agile and simple procedure. Brazil High
Lack of research and development culture Increase investment in R&D and partnerships with foreign manufacturers to improve the adaptation of technology to local winds. Wind Sector Medium
Lack of government interest and/or commitment Press the government to reinstate auctions on a regular basis and to improve transmission infrastructure auctions. Brazil High
System restrictions Similar to high transaction costs (see above). Brazil High
Lack of social acceptance Creation of a voluntary code of conduct and investment in local social projects. Wind Sector Low
Uncertainty of government policies Similar to lack of government interest and/or commitment (see above) Brazil High
Lack of infrastructure Similar to high transaction costs (see above). Brazil High

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