Provisional Measure on Brazil’s Power Sector Reform

On May 21, 2025, Provisional Measure (“MP”) No. 1,300 was published, introducing the expected “Reform of the Power Sector”.

Modernizing the power sector – with the primary purposes of expanding the free market and adjusting the allocation of costs and risks in the power sector – has been debated for several years, particularly (i) at the House of Representatives and the Brazilian Senate, through Bills (“PLs”) No. 1,917/2015 and No. 232/2016 (PL No. 414/2021); and (ii) at the Ministry of Mines and Energy (“MME”), through Public Consultations No. 21/2016 (“CP 21”) and 33/2017 (“CP 33”), filed by the MME, which
resulted in several contributions for for new bills (via the PLs referred to above) as well as other legal and sub-legal measures further adopted.

However, the processing of the PLs was interrupted by the Brazilian National Congress after the Minister of Mines and Energy announced, in 2023, the drafting of a bill aimed at modernizing the power sector, which would cause the PLs mentioned to lose their purpose.

After a few months, on April 16, 2025, the MME submitted the draft of a bill to reform the power sector to the Chief of Staff’s Office and, on May 21, 2025, MP
No. 1,300/2025 was finally published.

Click here or the image below to download our e-book with the main aspects of the Provisional Measure​.

Demarest’s Energy and Natural Resources is available available to discuss and clarify the topics covered here.