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Rivers of Diesel in the Amazon: Why does the region with Brazil's biggest hydroelectric plants still rely on expensive, dirty fuel?
The report highlights a paradox in the Legal Amazon: while the region hosts Brazil's largest hydroelectric plants and generates over 25.7% of national electricity, approximately four million of its residents lack access to the National Interconnected System (SIN). Around three million people rely on isolated systems, 97% of which are powered by expensive and polluting diesel fuel, while nearly one million people have no reliable public energy access at all. These isolated systems are heavily subsidized by the Fuel Consumption Fund (CCC), which reached an estimated value of over R$ 10 billion in 2022. The document finds that municipalities with isolated systems consistently perform worse across key socioeconomic indicators, including the Human Development Index and GDP per capita, compared to connected municipalities. To address this, the report recommends modifying auction rules to make renewables more competitive, incentivizing decentralized solar power, and improving the 'More Light for the Amazon' program through better oversight and community involvement.
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Document type: Report