Watershed as Planning Parameter for the Distribution of Royalties of Hydroelectric Power Plants

The present distribution system of resource compensation for water use is a procedure that compensates Brazilian municipalities and states whose land is flooded by the dam of a hydroelectric power plant with installed capacity higher or equal to 30 MW. The Constitution of 1988 states that all municipalities that contribute to the production of electric energy are eligible to obtain a share in the economic results of the exploitation of water resources for energy generation, and not only those municipalities whose land has been flooded. Therefore, this paper proposes a new methodology for the distribution of royalties by the installation of hydroelectric power plants. We obtained the upstream watershed limits of 45 MW hydropower plant the power plant dam, determined the participation area of each municipality that belongs to it and we obtained the data of distribution of royalties by the Camargos hydroelectric power plants in 2015.The software QGis 2.18.13 was using to data processing. The current form of financial compensation apportionment to the municipalities benefits only those whose land has been flooded. The new methodology proposed for royalty distribution is based on the General Equation of the Electric Power Generated. The methodology proposed in this paper also compensates the municipalities of the watershed, whose land has not been flooded. Besides, it enables all municipalities of a given watershed to receive resources for the preservation of their water and soil, thus promoting energy security in Brazil.