Coal-fired electricity generation in Brazil under public regulation: security-of-supply assessment

Purpose This study aims to propose an approach to assess the security of supply (SS) in a coal-fired electricity generation supply chain subject to public price regulation in Brazil. This study characterizes the Brazilian scenario of coal-fired electricity generation, which represents less than 3.5%...

Full description

Saved in:
Bibliographic Details
Published in:International journal of energy sector management 2024-02, Vol.18 (2), p.390-410
Main Authors: Battesini, Marcelo, Koppe, Jair Carlos
Format: Article
Language:English
Subjects:
Amortization
Coal
Coal mining
Coal-fired power plants
COVID-19
Disruption
Economic analysis
Electricity
Electricity generation
Electricity pricing
Empirical analysis
Energy industry
Energy sources
Environmental impact
Occupational safety
Regulation
Risk
Risk assessment
Security
Suppliers
Supply chains
Sustainability
Taxation
Citations: Items that this one cites
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Purpose This study aims to propose an approach to assess the security of supply (SS) in a coal-fired electricity generation supply chain subject to public price regulation in Brazil. This study characterizes the Brazilian scenario of coal-fired electricity generation, which represents less than 3.5% of the energy sources. Design/methodology/approach Data from six mining companies that supply a coal plant were analyzed in a case study. The risks were characterized and objectively estimated through a synthetic multidimensional index. Structural changes in the earnings before interest, taxes, depreciation, amortization and exploration indicator time series of coal companies (CC) were statistically detected. Findings Empirical evidence demonstrates that the supply chain has a low disruption risk (SS index equal to 0.74). However, when suppliers are individually analyzed, 48.64% of all coal shows moderated disruption risk, and 2.51% is under high risk. In addition, this study finds a drop in the financial results of CC related to public regulation of coal prices. This impacts the security of coal supply. Research limitations/implications This study discusses the influence of legal and regulatory policy risks in a coal power generation supply chain and the implications of the SS index as a management tool. Originality/value A novel SS index is presented and empirically operationalized, and its dimensions – environmental, occupational, operational, economic-financial and supply capacity – are analyzed.
ISSN:1750-6220
1750-6220
1750-6239
DOI:10.1108/IJESM-09-2022-0003