When the costs of transmission lines are too

When the costs of transmission lines are too high because of distance, dispersion and maintenance issues, the use of distributed generation is the only possible solution. Local generation also avoids MC 1568 looses due to electrical power distribution, mainly consisting in resistive losses in the conductor. For those cases where on-grid connection is out of question, the Brazilian Government uses microgrids supplied by a small generation unit. Diesel generation has been the only option considered until recent years, when some projects trying to use local renewable resources have arisen. After an average of 10 years of evaluation period, many projects revealed to be sustainable when coupled with productive schemes and dramatically improved the quality of living in the communities. The costs of angina projects were, however, too high, especially regarding the capital cost (initial investments). The experimental characteristics of some projects and the use of imported equipments are pointed out at the main reasons for these overruns. Large-scale manufacturing, subsidies for renewable generation, and the technical improving of the systems could lower these costs to be competitive with diesel generation.