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Public Energy Management and Decision-Making Model: A Proposal based on Energy Sustainability Indicators

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Abstract

The objective of this study is to develop a decision-making model for the Brazilian electricity sector, based on sectoral indicators of energy sustainability. The methodology of this investigation constructed sectorial indicators of energy sustainability, from linear correlations verified between variables of the energy input and development variables, whose results fed a decision-making structure supported by technology, norms and rules and in the decision style. The place of study was the State of Pará and the time span between 2010 and 2019. The investigation concluded the need to re-read the decision-making process in the Brazilian electricity sector, through the essential use of a sectorial system of indicators, which demonstrates strategic respect for the specificities the economic sectors and to guide, through a decision-making model, how electricity can be translated into development based on the productive processes of these sectors.

I. INTRODUCTION

Electricity public management and decision-making aspects in the electricity sector have always been prominent in the social debate. Modern society uses increasing amounts of electricity (Narayan, Doytch, 2017). Electric energy has always been a fundamental bias in the development process of societies (Collaco et al., 2019). According to Schultz (2016) and Pereira (2018), public management encompasses intricacies linked to the territory and the needs of populations, in order to also involve connections between economic, social and political powers, through decision-making.

The electricity sector is a social organization formed by systemic relationships that involve the process of transforming primary energy to its finais use by type of consumer. These relationships are established between the components of the electricity sector, such as: generation, transmission and distribution of electricity. Electric energy is a secondary energy that can be acquired through primary energy sources transformed from converters; however, depending on the nature of these converters, the generation of electricity can direct economic, social, technological and environmental impacts, to a greater or lesser extent, from all sectors of economic activity (Reis, Fadigas, Carvalho, 2012). The quantitative and qualitative profile of the availability of the energy input establishes bases for the conditions of the populations to guarantee a certain quality of life through. It is in this sense that the construction of electricity sustainability indicators represents relevant tools in view of the possibility of unraveling the existing intricacies between electricity and quality of life.

According to Borges (2012), in public electricity management, indicators favor the decision-making process through guidelines, which tend to articulate with greater precision the strategic mission of energy with the development of regions and countries. In each economic segment, electricity reflects in order to generate jobs, levels of income concentration, consumption flow, volumes of polluting gases emitted, from different quantities. (Amaral, 2017). In this perspective, this study asks: how could decision-making in the electricity sector in Brazil be supported by sectorial indicators of energy sustainability? The purpose of this investigation is to build a decision model for the electric energy sector in the country, supported by sectorial indicators of electric energy sustainability.

II. THEORETICAL FRAMEWORK

The discussion environment about public management has raised numerous relevant aspects for examining the capacity of public managers to achieve efficient goals in dealing with public resources invested in regions or countries; among these aspects, it is cited the interference of the ideological field of people who influence more decisively with the decision-making power, through relations in segments, such as electricity among them, the influence of ideologies of groups that interfere with more power of decision, through correlations of forces along various branches, such as energy (Schultz, 2016).

The public energy management environment is developed through public policies in the electricity sector, which generally aim to demonstrate that investments aim at economic growth and improving the population's living conditions. In this process, strategic aspects are verified, from the choice of electricity generation sources to the effects of the use of this energy in the different sectors of a country's economy (Bermann, 2003; Borges 2012; Cornescu, Adam, 2014).

As for decision-making in the public environment, according to Silva (2013), there are three elements that make up a decision-making process within public management. They are: technology; rules and norms; and decision-making style. With regard to technology, it is observed that the administrative and organizational structure must be improved from instruments relevant to information technology to support decision-making, as a way of reducing risks, that is, without using aspects of a subjective nature; as for the rules and norms, it is highlighted that the obedience to these norms and rules makes it possible to achieve optimization in decision making; and finally, with regard to the decision-making style, it is highlighted that it refers to the common standards that decision makers tend to use when facing a decision-making panorama (Silva, 2013).

In this perspective of discussion, attention is drawn to the mission of electricity sustainability indicators in line with the intricacies of the decision-making process. Indicators must be interpreted based on the definition of sustainable development. Sustainable development seeks sustainability and the difficulties in conceptualizing the terminology sustainability demonstrates the difficult task of reflecting concepts in practical terms (Sachs, 2009; Costa, Teodósio, 2011; Prado, 2015). According to Costa and Teodósio (2011), sustainability comprises the ability to maintain bases of an economic, social and environmental nature that generate the possibility of contemplating the demands of populations in a harmonious way and the organized possibility of examining sustainability is in line with the elaboration of sustainability indicators.

The effort to improve energy analysis tools along with the development process has translated since the 1990s into three important contributions. The indicators from Helio Internacional, the indicators from the National Electric Energy Agency - Aneel and the indicators from Camargo et al. (2004). The indicators of Helio International (2005) are composed of eight indicators, divided into four aspects: economic, environmental, social and technological. The indicators from Aneel (1999) punctuated the ecological, political, economic and technological aspects. And finally, the indicators by Camargo et al. (2004) were composed in economic, environmental and social indicators.

III. METHODOLOGICAL STRATEGY

The study site was the State of Pará. Pará comprises a geographical area of 1,247,689.515 km 2 and an estimated population of 8,690,745 inhabitants, which gives it a density of 6.96 inhabitants/km 2 (Ibge, 2020). The public electricity distribution service in the State is a concession of Centrais Elétricas do Pará - Celpa, while the share in the generation market is the domain of Centrais Elétricas do Norte - Eletronorte.

The correlation sought as a result a coefficient that quantified the degree of correlation Pearson's coefficient (p) (Chen, Popovic, 2002).

r = ∑ i = 1 n ( x i − x ¯ ) ( y i − y ¯ ) ∑ i = 1 n ( x i − x ¯ ) 2 ⋅ ∑ i = 1 n ( y i − y ¯ ) 2 ,

Where: x1, x2,..., xn and y1, y2,..., yn comprise the measured values of both variables. And the following equations are the arithmetic means of these variables:

x ¯ = 1 n ⋅ ∑ i = 1 n x i e y ¯ = 1 n ⋅ ∑ i = 1 n y i

The linear correlations verified in each dimension, through the sectors, were described and analyzed regarding their importance, representativeness and used measurement unit. Later, the variables were organized according to the dimensions: economic, social, environmental and political, which built the energy sustainability indicators, and from each sector of activity, which made up the energy sustainability indices. In calculating the indicators, we proceeded from a weighted average composed of the result of the calculation of the composite variables. In calculating the composite variables, the calculation adopted two variables: the first referring to development, and the other referring to the energy environment.

Table 1 shows the construction structure of the index and the electricity sustainability indicators for the agricultural sector in Pará.

Table 1: Structure of construction of electricity sustainability indicators in the agricultural sector of Pará, Brazil.
INDICATORAGRICULTURAL SECTOR ECONOMIC INDICATOR
VARIABLECOMPOSITIONRANGELEVEL
Economic (E)Indicator=1+2+33GDP/Quantity of KW consumedIn addition to R$ 1204High
From R$ 120,00 to R$ 106,003Good
From R$ 105,00 to R$ 91,002Medium
Until R$ 90,00 In1Low
Quantity of GW consumed /amount invested in electricityadditionto0,75 GW4High
From0,75 to 0,51GW3Good
From0,50 to 0,26 GW2Medium
Until0,25 GW1Low
4High
Variation in electricity tariff /amount invested in electricityIn addition to 0,20%
From0,20% to 0,16%3Good
From 0,15% to 0,06%2Medium
Until 0,05%1Low
INDICATORSOCIAL INDICATOR OF THE AGRICULTURAL SECTOR
VARIABLECOMPOSITIONRANGELEVEL
Social (S)Indicator = 1+22Balance of ormal jobs/amount invested in electricityIn additionto204High
From 20 to 163Good
From15 to 6 Until 52Medium
1Low
Average income/Quantity of GW consumedIn addition to R$ 7,504High
From R$ 7,50 to R$ 6,013Good
From R$ 6,00 to R$ 4,012Medium
Until R$ 4,001Low
INDICATORAGRICULTURAL SECTOR ENVIRONMENTAL INDICATOR
VARIABLECOMPOSITIONRANGELEVEL
Environmental(A)Indicator = 1+22Variation in energy efficiency in the sector/ Amount of GW consumedIn addition to 0.25%4High
From0,25% to 0,19%3Good
From0,18% to 0,11%2Medium
1Low
Variation in the emission of polluting gases derived from electricity generationUntul 0,10%4High
In addition to 30%3Good
From 20% to 16%2Medium
Until 15%1Low
INDICATORAGRICULTURAL SECTOR POLICY INDICATOR VARIABLECOMPOSITIONRANGELEVEL
Political (P)Indicator= 1+2/2Variation of the equivalent frequency of interruption per consumer unit/ rate variation charged for electricityIn addition to 0,75%4High
From 0,75% to 0,51%3Good
From 0,50% to 0,2%2Medium
Until 0,1%1Low
Variation in duration of interruptions per unit. consumer/variation of the tariff charged for electricityIn addition to 0,6%4High
From 0,50% to 0,5%3Good
From 0,4% to 0,2%2Medium
Until 0,1%1Low
Table 2: Structure of construction of electricity sustainability indicators in the industrial sector of Pará, Brazil.
ECONOMIC INDICATOR FOR THE INDUSTRIAL SECTOR
INDICATORVARIABLECOMPOSITIONRANGELEVEL
In addition to 0.25%4High
GDP/Quantity of KW consumedFrom R$ 1,50 a R$ 1,163Good
From R$ 1,15 a R$ 0,762Medium
Until R$ 0,751Low
In additionto120 GW4High
Quantity of GW consumed/ amount invested in electricityFrom 120 to 81 GW3Good
From80 to 31 GW2Medium
Economic (E)Variation in electricity tariff/ amount invested in electricityUntil 30 GW1Low
Indicator=1+2+3/3In addition to 0,35 %4High
From 0,35 % to 0,21 %3Good
From 0,20 % to 0,06 %2Medium
Until 0,05 %1Low
INDICATORSOCIAL INDICATOR OF THE INDUSTRIAL SECTOR
VARIABLECOMPOSITIONRANGELEVEL
In additionto75 empregos/milhão investido4High
Balance of formal jobs/amount invested in electricityFrom 75 to 46 From 45 to 163Good
Until 152Medium
Social (S)Average income/Quantity of GWIn addition to R$ 0,06 From R$ 0,06 to R$ 0,05 From R$ 0,04 to R$ 0,034High
Indicator = 1+2/23Good
21MediumLow
consumedUntil R$ 0,02
INDICATORENVIRONMENTAL INDICATOR FOR THE INDUSTRIAL SECTOR
VARIABLECOMPOSITIONRANGELEVEL
Environmental(A)Indicator = 1 + 2 2 Variation inenergyefficiency in thesector/Amountof GWconsumedVariation in theemission ofpolluting gasesderived fromelectricitygeneration/Quant. of GWconsumedIn addition to 0,60%From 0,60% to 0,31 %From0,30% to 0,07%Until0,06%4321HighGoodMediumLow
Table 3: Structure of construction of electricity sustainability indicators in the commercial sector of Pará.
INDICATORCOMMERCIAL SECTOR ECONOMIC INDICATORRANGELEVEL
VARIABLECOMPOSITION
GDP/Quantity of KW consumedIn addition to R$ 1,504High
From R$ 1,50 to R$ 1,163Good
From R$ 1,15 to R$ 0,762Medium
Until R$ 0,751Low
In addition to 20 GW4High
From 120 to 81 GW
Economic (E)Quantity of GWGW3Good
Indicator=1+2+3consumed/amount invested in electricityFrom 80 to 31 GW2Medium
Until 30 GW1Low
In addition to 0,35 %4High
From 0,35 % to 0,21 %3Good
Variation in electricity tariff/amount invested in electricity%3Medium
From 0,20 % to 0,06 %2
Until 0,05 %1Low
INDICATORCOMMERCIAL SECTOR SOCIAL INDICATOR
VARIABLECOMPOSITIONRANGELEVEL
In addition to 754High
Balance of formaljobs/amount invested in electricityFrom 75 to 463Good
From 45 to 162Medium
Until151Low
In addition to R$ 0,064High
From R$ 0,06 to R$ 0,053Good
Social (S)Indicator = 1+2/2Average income/Quantity of GW consumedFrom R$ 0,04 to R$ 0,032Medium
Until R$ 0,021Low
INDICATORCOMMERCIAL SECTOR ENVIRONMENTAL INDICATOR
VARIABLELCOMPOSITIONRANGELEVEL
Environmental(A)Indicator = 1+2/2Variation in energy efficiency in the sector/Amount of GW consumedIn addition to 0,60%4High
From 0,60% to 0,31%3Good
From 0,30% to 0,07%2Medium
Até 0,06%1Low
Variation in the emission of polluting gases derived from electricity generation/Quant. of GW consumedIn addition to 0,20%4High
From 0,20% to 0,16%3Good
From 0,15% to 0,11%2Medium
Until 0,10%1Low
INDICATORCOMMERCIAL SECTOR POLICY INDICATOR
VARIABLECOMPOSITIONRANGELEVEL
Political(P)Indicator= 1+2/2Variation of the equivalent frequency of interruption per consumer unit/ rate variation charged for electricityIn addition to 0,60%4High
From 0,60% a 0,4% 33Good
From 0,3% to 0,2%2Medium
Until0,1%1Low
Variation in duration of interruptions per unit. consumer/variation of the tariff charged for electricityIn addition to 0,40%4High
From 0,40% to 0,21%3Good
From 0,20% to 0,2%2Medium
Until0,1%1Low

In the methodological strategy of this study, each sector of economic activity was assessed based on the components of the decision structure proposed

Source: Prepared by the authors (2021).

Figure 1: Structure of the decision-making process in public management.

Next, the results and discussions relevant to the calculation of energy sustainability indicators and the provision of subsidies to the decision-making process in the electricity sector will be presented, Which considers the intricacies of technology, rules and

IV. RESULTS AND DISCUSSIONS

This section will be composed, firstly, by the presentation of the results of the sectorial indicators of electric energy sustainability and their analysis, in the scope of each economic activity sector. Then, a decision-orientation model will be presented, which considers the intricacies of technology, rules and standards, and decision-making style, fed by the results of the sector sustainability indicators measured for the State of Pará, between 2010 and 2019.

Below, in Tables 4 and 5, the results of the investigation on energy sustainability indicators in the agricultural sector of the State of Pará are presented.

Table 4: Score of ranges for calculating energy sustainability indicators in the agricultural sector in Pará (2010-2019).
INDICATORVARIABLE2010201120122013201420152016201720182019
ECONOMICGDP/Quantity of KW consumed2234433211
Quantity of GW consumed/amount invested in electricity4433444222
Variation in electricity tariff/amount invested in electricity3323422111
Balance of formal jobs/amount invested in electricity1223444211
Average income/Quantity of GW consumed2334222444
ENVIRONMENTALVariation in energy efficiency in the sector/Amount of GW consumed2242233321
Variation in the emission of polluting gases derived from electricity generation/Amount of GW consumed4444322111
POLITICALVariation in FEC per consumer unit/variation in the tariff charged for energy1123422212
Variation of DEC per consumer unit/variation of the tariff charged for energy1234443311

In the agricultural sector, the highlight was the social and environmental dimensions, with positive results, predominantly registering indicators with levels between Good and Medium.

Table 5: Energy sustainability indicators in the agricultural sector (2010-2019).
INDICADOR2010201120122013201420152016201720182019
EconomicGoodGoodGoodGoodHighGoodGoodMediumLowLow
SocialMediumMediumMediumGoodGoodGoodGoodMediumMediumMedium
EnvironmentalGoodGoodHighGoodMediumMediumMediumMediumMediumLow
PoliticalLowLowMediumGoodHighGoodMediumMediumLowLow

Source: Prepared by the authors (2021).

In the agricultural sector, the highlight was the social and environmental dimensions, with positive results, predominantly registering indicators with levels between Good and Medium. In the years 2018 and 2019, the panorama changed as there were records of Low level indicators in the economic, environmental and political dimensions in the sector. The environmental dimension is a concern regarding sustainability and the possibility of measurement in this study is in line with the reality portrayed that ways to measure sustainable development are being structured and tested in various parts of the world (Lira, 2008). The political dimension was the one with the most weaknesses in the period studied. These weaknesses reveal the inadequate energy supply of a large portion of Pará society, which influences public management with lesser decision-making power. Thus, part of society ends up benefiting at the expense of others, demonstrating the influence of different ideologies of groups that interfere with more decision-making power in public management (Schultz, 2016).

Below, in Tables 6 and 7, the results of the investigation on energy sustainability indicators in the industrial sector of the State of Pará are presented.

Table 6: Score of ranges for calculating energy sustainability indicators of the industrial sector in Pará, Brazil (2010-2019).
VARIABLE2010201120122013201420152016201720182019
EconomicGDP/Quantity of KW consumed2223322433
Quantity of GW consumed/ amount invested in electricity4433322111
Variation in electricity tariff/amount invested in electricity from Balance of formal jobs/amount invested in electricity3323343111
SocialAverage income/Quantity of GW consumed1222113342
Variation in energy efficiency in the sector/Quantity of GW consumed2311413142
EnvironmentalPoliticalVariation in the emission of polluting gases derived from electricity generation /Amount of GW consumed2342112222
Variation in the equivalent frequency of interruption per consumer unit/variation in the tariff charged for electricity Variation in duration of interruptions per consumer unit/variation in tariff charged for electricity1144212443
1244123344
Table 7: Energy sustainability indicators in the industrial sector (2010-2019).
INDICATOR2010201120122013201420152016201720182019
EconomicGoodGoodGoodGoodGoodGoodGoodMediumMediumMedium
SocialMediumGoodMediumMediumLowMediumMediumMediumGoodLow
EnvironmentalMediumGoodMediumLowMediumLowMediumLowGoodMedium
PoliticalLowLowHighHighLowLowMediumGoodHighGood

The indicators measured reveal an important responsibility to the framework of environmental unsustainability insofar as they point to a profile endowed with large proportions of consumption, added to the relatively low energy yields verified in the analyzed period. The encouragement of mechanisms that strategically redirect the industrial profile of Pará to the condition of contributing to income deconcentration could be operated by increasing the state tax burden for exports of heavy industry products from Pará. The change in the industrial profile would occur through the absence of tax incentives for the segments identified by

Source: Prepared by the authors (2021).

the study: ferroalloy, aluminum, steel, pulp and paper and chemical products, and the provision of these incentives to the food and beverage, textile and cement industries. The industrial profile of Pará signals the absence of priority aspects to the development process, particularly in relation to the variables that affect the sustainability of the sector, which is in line with the considerations of several authors on the association between energy use and development (Camargo, Ugaya, Agudelo, 2004; Moldan, Janousková, Hák, 2012; Cornescu, Adam, 2014; Silva et al., 2018).

Below, in Tables 8 and 9, the results of the investigation on energy sustainability indicators in the commercial sector of the State of Pará are presented.

Table 8: Score of ranges for calculating energy sustainability indicators of the commercial sector in Pará, Brazil (2010-2019).
VARIABLE2010201120122013201420152016201720182019
EconomicGDP/Quantity of KW consumed1122233343
Quantity of GW consumed/ amount invested in electricity3433322112
Variation in electricity tariff/3314432212
Socialamount invested in electricity
Balance of formal jobs/ amount invested in electricity4433332122
Average income/ Quantity of GW consumed1122233444
Variation in energy efficiency in the sector/ Quantity of GW consumed2314222322
EnvironmentalVariation in the emission of polluting gases derived rom electricity generation/ Amount of GW consumed3344323221
Resultados de tradução1124112322
Variation in the equivalent frequency of interruption per consumer unit/variation in the tariff charged for electricity1124112322
PoliticalVariation in duration of interruptions per consumer unit/ variation in tariff charged for electricity1234143211

Source: Prepared by the authors (2021).

Table 9: Energy sustainability indicators in the commercial sector (2010-2019).
INDICADOR2010201120122013201420152016201720182019
EconomicGoodMediumMediumGoodGoodGoodMediumMediumMediumMedium
SocialMediumMediumMediumMediumMediumGoodMediumMediumGoodGood
EnvironmentalMediumGoodMediumHighMediumMediumMediumMediumMediumLow
PolíticoLowLowMediumHighLowMediumMediumMediumLowLow

The decentralization of energy planning, through the creation of the State Energy Policy Council (CEPE), would ensure that the guidelines and strategies designed for the electricity sector in Pará were conducted not only in accordance with the federal government's global interests, but also in a manner to ensure compliance with the demands of society in the state supplying this electricity. What meets the concerns of managers to achieve qualitative results in public management with regard to financial resources applied in the territory (Mafra; Silva, 2004).

In Table 10, below, a structure for decision-making guidance based on the results of the sectorial indicators of sustainability of electricity in Pará, measured in the period from 2010 to 2019, is presented. Suggestions for alternative actions within each of the sectors of economic activity and that considers the economic, social, environmental and political dimensions, have the purpose of making corrections in the efficiency of the relations between electricity and development, in order to contribute to the increase in the level of these indicators.

Table 10: Framework for decision-making guidance based on the results of the sectorial indicators of sustainability of electricity in Pará.
SETORDIMENSIONTECHNOLOGY(Result of indicators)COMPONENTS DECISION PROCESS RULES AND RULES (Legal Limits)DECISION-MAKING STYLE(Concentration of power)SUGGESTION OF ALTERNATIVES
AGRICULTURALECONOMICPredominance in GOOD and LOW levels in the period analyzed.1. Law no. 10,438, of 2002, provides a resource fund for energy development controlled by Eletrobras.2. Lack of integration between energy policy and public development policies3. Law no. 9,991, of 2000, assigned the electric energy distributor the obligation to collect resources from consumers and invest 0.5% of its revenue in energy efficiency projects (Aneel, 2018).1. Absence of a council at the state level to establish local guidelines for energy policy.2. The nature of the federal government's investments in electricity does not consider the local agricultural profile.1. Increased investments in electricity associated with GDP expansion in the sector, through incentives to new agricultural enterprises.2. Installation of electricity consuming units in rural settlements integrated to the production segment of the main local production chains.3. Promotion of energy efficiency incentives seeking to reduce dependence on energy imports4. Subsidies of 10 million reais for the start of operations to generate alternative energy sources in the sector, notably solar and biomass, with the intention of reducing electricity costs in the long term.
SOCIALPredominance in GOOD and MEDIUM levels in the periodanalyzed.1. Lack of autonomy in energy policy associated with development.2. Lack of integration between energy policy and public development policies.1. The autocratic profile of federal government investments does not consider the generation of jobs through energy production chains.1. Expansion of the use of alternative generation sources to water sources as catalysts for direct and indirect jobs.2. Favoring incentives for energy efficiency in order to create jobs in the sector.
ENVIRONMENTALPredominance in GOOD and MEDIUM levels in the period analyzed.1. Lack of autonomy in energy and environment policy.2. Lack of integration between energy policy and public development policies1. Absence of a council at the state level to create local guidelines thatre concile energy policy and the agricultural sector.1. Implement investments in energy efficiency with the purpose of reducing pollution levels.2. Subsidies of 10 million reais for the start of operations to generate alternative energy sources in the sector, notably solar and biomass.
Predominance in MEDIUM and LOW levels in the period analyzed.1. Absence of state autonomy in energy policy.2. Lack of integration between energy policy and effective citizen participation.1. Lack of a state council to create mechanisms for associating the quality of electricity services and the tariff charged.1. Creation of the State Energy Policy Council (CEPE).2. Regulation, by Aneel, of tariffs based on the quality of supply.3. Quality could be verified by the number of interruptions in the supply of electricity and the duration of these interruptions.
Predominance at GOOD level. MEDIUM level in recent years of the period analyzed.1. Law no. 10,438, of 2002, provides a resource fund for energy development controlled by Eletrobras.2. Lack of integration between energy policy and public development policies3. Law No. 9,991, of 2000, assigned the energy distributor the obligation to collect resources from users and invest 0.5% of its revenue in efficiency projects (Aneel, 2018).1. Absence of a council at the state level to establish an association between energy policy and the local industrial profile.1. I encourage mechanisms that direct the industrial profile of Pará to the condition of contributing to the deconcentration of income, that is, promoting changes in the composition of exports in the heavy industry.2. Promotion of energy efficiency incentives seeking to reduce dependence on energy imports
Predominance at MEDIUM level in the period analyzed.1. Lack of autonomy in energy policy associated with development.2. Lack of integration between energy policy and public development policies1. The autocratic profile of federal government investments does not consider the generation of jobs through energy production chains.2. Absence of a state council to establish local guidelines that reconcile energy policy and the sector.1. Expansion of the use of alternative generation sources to water sources as catalysts for direct and indirect jobs.2. Reduced working hours in energy-intensive industries to generate new jobs.3. Favoring incentives for energy efficiency in order to create jobs in the sector.
Predominance in MEDIUM and LOW levels in the period analyzed.1. Lack of autonomy in energy and environment policy.2. Lack of integration between energy policy and public development policies1. Absence of a council at the state level to establish local guidelines for the containment of environmental impacts caused by the energy input.1. Incorporation of compensatory devices for environmental costs in the sector based on accounting mechanisms for price formation.2. Implement investments in energy efficiency with the purpose of reducing pollution levels.3. Subsidies of 10 million reais for the start of operations to generate alternative energy sources in the sector, notably solar and biomass.
Predominance in levels ranging from HIGH to LOW in the period analyzed.1. Lack of integration between energy policy and effective citizen participation.2. Absence of state autonomy in energy policy.1. Law no. 10,438, of 2002, provides a resource fund for energy development controlled by Eletrobras.2. Lack of integration between energy policy and public development policies3. Law No. 9,991, of 2000, assigned the electricity distributor the obligation to collect funds from consumers and invest 0.5% of its revenue in energy efficiency projects (Aneel, 2018)1. Lack of a state council to establish mechanisms for associating the quality of electricity services and the tariff charged in the sector.1. Absence of a council at the state level to establish an association between energy policy and the profile of local commerce.1. Creation of the State Energy Policy Council (CEPE).2. Regulation, by Aneel, of tariffs based on the quality of supply, where the referred quality can be verified through the number of interruptions in the supply of electricity and the duration of these interruptions.1. Increased investments in electricity associated with GDP expansion in the sector, in order to promote programs for the use of alternative energy to offset existing electricity bills.2. Promotion of energy efficiency incentives seeking to reduce dependence on energy imports
Predominance in GOOD and MEDIUM levels in the period analyzed.
Predominance in GOOD and MEDIUM levels in the period analyzed.1. Lack of autonomy in energy policy associated with development.2. Lack of integration between energy policy and public development policies1. Absence of a council at the state level to establish local guidelines thatre concile energy policy and the sector.1. Linking of special reduced tariff bands for companies in the sector with a large number of jobs.2. Favoring incentives for energy efficiency in order to create jobs in the sector.
Predominance at MEDIUM level in the period analyzed.1. Lack of autonomy in energy and environment policy.2. Lack of integration between energy policy and public development policies1. Absence of a state council to establish local guidelines for the containment of environmental impacts caused by the energy input.1. Subsidies of 10 million reais for the start of operations to generate alternative energy sources in the sector, notably solar and biomass.2. Implement investments in energy efficiency with the purpose of reducing pollution levels.

Source: Prepared by the authors (2021).

POLÍTICAPredominance in LOW and MEDIUM levels in the period analyzed.1. Absence of state autonomy in energy policy.2. Lack of integration between energy policy and effective citizen participation.1. Lack of a state council to establish mechanisms for associating the quality of electricity services and the tariff charged in the sector.1. Creation of the State Energy Policy Council (CEPE).2. Regulation by Aneel of tariffs based on the quality of supply.3. The quality could beverified through the number of interruptions in the supply of electricity and the duration of these interruptions.

The actions based on the results of the sectorial indicators of electricity sustainability for the State of Pará were divided into three stages: short, medium and long term. In the short term, the study recommends: a) decentralization of energy planning through the creation of the State Energy Policy Council (CEPE); b) establishment of a local integrated strategic planning model that uses as an instrument the methodological framework for the construction of energy sustainability indicators and indices, proposed in this article; c) maintain the flow of investments in electricity to maintain Gross Domestic Product - GDP expansion in all sectors; and d) regulation of tariffs based on the quality of supply.

In the medium term, the following are indicated: a) the implementation of social sustainability programs with the energy environment of the agricultural sector, including production chains, and of the industrial sector, reducing the workload in energy-intensive industries; b) incorporation of compensatory devices for environmental costs in the industrial sectors.

In the long term, it is recommended: a) the encouragement of mechanisms that strategically direct the industrial profile of Pará, promoting changes in the composition of heavy industry exports (from the increase in the state tax burden for exports of heavy industry products from Pará) and changing the industrial profile, in order to withdraw tax incentives to the segments identified by the study: ferroalloy, aluminum, steel, pulp and paper and chemical products, and the provision of these incentives to the food and beverage, textile and cement industries, sectors these indicated by the results of the analyzes carried out); and b) increase in the energy efficiency of electricity through credit lines to agricultural enterprises that intend to exchange equipment with high electricity consumption.

V. FINAL CONSIDERATIONS

The study elaborated an original decision planning model based on sectorial indicators of electricity sustainability in the state of Pará, capable of contributing to the planning of public actions for sustainable development in Pará, according to the results of these indicators measured by sector of economic activity.

The indicators calculated in this investigation revealed a particular reality in each sector of economic activity in the State of Pará. In the agricultural sector, the highlight was the social and environmental dimensions, with positive results, registering levels between Good and Medium. In the industrial sector, the positive highlight was the economic dimension, also with a predominance of Medium and Good levels. In the commercial sector, the positive highlight was the economic and social dimensions, recording, in the same way, Medium and Good levels. The political dimension was the one that showed the most weaknesses in the period surveyed, in all sectors of economic activity in Pará.

The study also presented a decision-making model that suggested actions linked to increasing energy autonomy in Pará, redirecting the industrial profile, including compensatory devices for environmental costs, directing investments to increase GDP in the reality of each sector of economic activity, among other recommendations. The article contributed through: an originality of analysis that reveals the strategic usefulness of knowing the energy specificities of each economic sector and how electricity reflects on the productive processes of each sector; a reinterpretation of the Brazilian energy plan from a decision analysis dynamic that considers the regional specificities for the strategic use of the energy input; and the possibility of using a decision-making model in the electricity sector applicable to any state in Brazil.

New investigations can follow the methodological dynamics presented in this study and the residential sector would be the one that would most add to the deepening of the understanding of this theme. The residential sector comprises a relevant environment for examining the reality of meeting basic energy needs, as it identifies the socioeconomic profile of households in a given population and their conditions of access to energy input.

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

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Data Availability

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How to Cite This Article

Fabricio Quadros Borges, Fabrini Quadros Borges, Mário Rocha de Vasconcelos. 2021. "Public Energy Management and Decision-Making Model: A Proposal based on Energy Sustainability Indicators". Global Journal of Human-Social Science - B: Geography, Environmental Science & Disaster Management GJHSS-B Volume 21 (GJHSS Volume 21 Issue B3).

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Crossref Journal DOI 10.17406/GJHSS

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Public Energy Management and Decision-Making Model: A Proposal based on Energy Sustainability Indicators

Fabricio Borges
Fabricio Borges Instituto Federal do Pará, Brasil
Fabrini Borges
Fabrini Borges <p>Instituto Federal do Pará, Brasil</p>
Mário Vasconcelos
Mário Vasconcelos