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In Brazil, ninety percent of total electric power comes from renewable sources, where hydropower represents 2/3 of the national energymatrix. In 2012, the new Federal Forest Code eliminated environmental protection along drainage divides and reduced the mandatorywidth of riparian zones, allowing for land cover change in these environmentally sensitive areas. The conversion of forestlands toagriculture will subject hydroelectric reservoirs to a growing load of sediments, shortening their useful life. In this study of the Furnashydropower plant and its contributing basin, in the upper reaches of the Rio Grande, a re-evaluation of factors that determine thedistribution of finances accrued from hydroelectric generation is recommended. Under the current policy, royalties are paid by theFurnas facility to states and municipalities in direct relation to the area of land flooded by its reservoir, whereas contributing rainfallprecipitating in municipalities upstream of the lake is not considered. Currently, the 31 municipalities with lands flooded by thereservoir receive an average of R$ 213,107 (US$ 67,226) annually, while the remaining 172 municipalities in the basin receive nowater royalties. In the proposed approach to redistribute these funds, each of the 203 municipalities will receive compensationdetermined by their contributing catchment area, averaging R$32,543 (US$ 10,266) per year. By considering distribution of rainfall inorder to equitably allocate hydroelectric royalties, a system for the payment of environmental services is conceived. Such a systemintends to incent stakeholders to protect or replant native forests along drainage divides and riparian zones, in recognition of the valuethis vegetation has in the reduction of long term costs for hydroelectric facilities

the international archives of the photogrammetry, remote sensing and spatial information sciences/international archives of the photogrammetry, remote sensing and spatial information sciences

AN EQUITABLE APPROACH FOR COMPENSATING MUNICIPALITIES OF THE RIO GRANDE WATERSHED FOR ELECTRICITY GENERATED BY THE FURNAS HYDROPOWER PLANT, BRAZIL