Government expands benefits of centralized renewable energy generation – PV Magazine Latin America

Publishes a Temporary Measure (MP) indicating reductions of up to 50% in Distribution Network Utilization Rate (TUSD) and Transmission Network Utilization Rate (TUST), for generators and consumers, which will be extended for 36 months. The Ministry of Mines and Energy (MME) estimates that about 34 GW of projects will benefit. The MP also includes paying the sector’s bills with money from the denationalization of Eletrobras.

President Luiz Inacio Lula da Silva and Minister of Mines and Energy Alexandre Silveira signed on Tuesday (April 9) the interim measure on renewable energies and reducing the effects of tariffs. The Temporary Measure (MP) allows the deadlines for specific projects related to renewable energy generation to be adapted to the implementation schedule of transmission lines. As a result, Morocco’s program allows renewable energy projects to add up to 34 gigawatts of energy to the National Interconnected System (SIN), according to estimates by the Ministry of Municipality and Environment.

These projects are expected to create about 400,000 jobs and generate up to 165 billion Brazilian reais ($32.5 billion) in private investment. Minister Silveira stressed that future energy demand will be covered by the new stations. “We are creating the conditions for the supply of solar, wind and biomass energy to anticipate the new green industry. This will generate decent jobs, income and dignity for our residents.

Law No. 14120 set the end of discounts on transmission and distribution network usage prices at 50% for generators and consumers of projects that requested support after March 2, 2022, and specified that for those who requested it before that date, the discounts will be guaranteed for a period of up to 48 months from the date of issuance of the support. The representative extends this period to start operating projects, with reductions, for a period of 36 months longer than what the law already stipulated, while maintaining the reduction in benefit for projects that requested support after March 2, 2022.

Entrepreneurs will have up to 60 days to request an extension from the National Electric Energy Agency (Aneel).

To maintain the right to the additional period, the entrepreneurs will provide a faithful performance guarantee worth 5% of the total investment, within a period of ninety days and will start the business within eighteen months.

The text also makes it possible to pay the Covid Account and the Water Shortage Account, by providing for the receipt of approximately 26 billion reais that will be paid as a result of the Eletrobras privatization process. The accounts were created to compensate energy distributors for the costs of purchasing more expensive energy during periods of unavailability of hydropower and water shortages during the COVID-19 pandemic. Of these funds, 15,000 million riyals will be allocated to pay bills and the remaining 11,000 million will be allocated to reduce interest rates. Through these measures, the government expects to reduce annual adjustments to electricity prices by 3.5% until 2026.

“We are providing a structural relief of at least 3.5% on the energy bills of Brazilian households, repaying the irresponsible loans of the previous government and paying the water shortage bill and the Covid bill,” Alexandre Silveira said.

The proposal also adjusts Amapá’s energy prices to the average of other northern states (9%). The state was expected to face price increases of more than 40%, due to distortions in the sector. “It would not be fair for the state’s residents to pay a 44% increase in their energy bills,” the minister said during the MP’s signing ceremony.

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