Xingu Solar: Xingu Indigenous Territory Clean Energy Project

The cost of energy generated by hybrid systems was lower than the cost in the diesel only scenario

The Instituto de Energia e Meio Ambiente (IEMA) carried out an assessment of the first results of the Xingu Indigenous Territory Clean Energy Project by Instituto Socioambiental (ISA). According to the assessment, the combination of fossil fuel generators with photovoltaic systems could generate an economy of more than R$30,000 per month in federal subsidies. Furthermore, the research showed that local communities prefer renewable energy due to energy security (because it does not depend on fuel supply) and environmental benefits. Data acquired shows that, at first, diesel generators have an advantage against solar systems. This is because they present lower investment costs. However, in order to perform an adequate economic comparison between the technologies, it is necessary to take into account the operational expenses considering that solar systems have a life cycle of 25 years. In this analysis, the cost of energy generated by hybrid systems (where there are both diesel generators and solar panels) was lower than the cost in the diesel only scenario.