NEWS

Brazilian Senate approves PL for Energy Transition Acceleration Program
On December 10, 2024, the Brazilian Senate approved PL 327/2021, which establishes the Energy Transition Acceleration Program (“PATEN”). This initiative seeks to encourage proposals for replacing polluting energy mixes with renewable energy sources.
Companies that carry out infrastructure works, research and development projects that reduce environmental impacts, or projects to expand or set up energy production parks with a sustainable energy mix will be eligible for the program. They will also have access to resources from the National Climate Change Fund (“FNMC”) and the opportunity to renegotiate debts with the Federal Government.
In addition, the bill also creates the Sustainable Development Guarantee Fund (“Green Fund”), managed by the National Development Bank, to secure financing risks for projects approved by PATEN. The Green Fund will comprise credits approved by the Brazilian Internal Revenue Service for reimbursement and owned by companies with projects approved by PATEN. Federal entities will be able to join the Green Fund through an agreement with the Federal Government.
Another highlight of the bill is the possibility of using funds for energy efficiency programs, reserved by distributors, to install solar panels in non-profit community associations.
The text now returns to the House of Representatives.
Access PL No. 327/2021 in full.
MME and ENBPar launch public call for energy efficiency in public buildings
On December 11, 2024, the MME and the Brazilian Nuclear and Binational Energy Holding Company (“ENBPar”) launched a public call for energy efficiency projects in public buildings, through the renovation and installation of renewable distributed generation in these buildings. The initiative is a significant step towards sustainability and the modernization of public infrastructure in Brazil.
Interested parties must submit, by May 09, 2025, a project that includes a strategy for improving the energy performance of buildings, combining the use of renewable generation integrated into the public building. Buildings eligible for projects must have been built at least one year ago and be operational. The funds available for the public call amount to BRL 100 million. The selected proposals will be announced by October 29, 2025.
Access the public call webpage in full.
MME announces results of public call for hydrogen hubs
On December 20, 2024, the MME announced the results of the public call for projects for low-carbon hydrogen hubs, which aim to decarbonize the Brazilian industry. A total of 70 proposals were received, with projects involving hydrogen production from various sources, such as wind, solar, ethanol and biomass.
The selected projects will proceed to the next stage, where they will be presented in detail. The winners will receive support from the international fund Climate Investments Funds – Industry Decarbonization (“CIF-ID”), in which Brazil is a participant.
The MME’s initiative represents a significant step towards Brazil’s energy transition, highlighting the country’s commitment to sustainability and innovation. The diversity of hydrogen production sources demonstrates a comprehensive and adaptable approach, essential for tackling global climate challenges. In addition, the support of the international CIF-ID fund not only reinforces the credibility of the selected projects but also attracts investment and global expertise, enhancing the positive impact of these initiatives.
Access the article in full.
ANEEL advances discussion on energy storage system regulations
On December 23, 2024, ANEEL’s board of directors launched Phase 2 of CP 39/2023, seeking contributions to the normative resolution that will regulate the storage of electricity, including reversible hydroelectric plants. The period for contributions ends on January 30, 2025.
Phase 2 of CP No. 39/2023 aims to obtain contributions from agents on (i) ANEEL’s proposed resolution to regulate the use of the storage system in the generation system and the requirements for granting authorization to the stand-alone storage agent, which will be in the “independent energy production” modality, and (ii) changes to the Transmission Rules (established by REN No. 905/2020), to provide for access to storage systems and their use of transmission grids.
These measures are essential for integrating new storage technologies into the National Interconnected System, fostering greater flexibility and security in energy supply.
Access Phase 2 of CP No. 39/2023.
Brazil will exceed BRL 1 trillion in funds for biofuels over the next ten years
On December 03, 2024, the MME, through the Energy Research Office (“EPE”), released a technical note stating that the advances of the Fuel for the Future Law (Law No. 14,993/24) should generate more than BRL 1 trillion in funds for the biofuels sector over the next ten years.
The note details investments (“CAPEX”) of BRL 100 billion and operating costs (“OPEX”) of BRL 924 billion between 2025 and 2034.
The study covers increased production of ethanol, biodiesel, biomethane and sustainable aviation fuels (“SAF”), as well as innovations such as green diesel and bio-CCS (biogenic carbon capture and storage). Ethanol production accounts for 59% of the planned investments, including new plants and plant modernization.
The Fuel for the Future Law encourages domestic production and aligns Brazil with global decarbonization targets. For sugarcane ethanol, investments in sugarcane plantations and industrial expansion exceed BRL 59 billion. The biodiesel segment, with mandatory blending mandates, will receive BRL 14.5 billion in investments and BRL 77.5 billion in operating costs. In the sustainable aviation fuels sector, the projects announced could generate BRL 17.5 billion in investments, consolidating Brazil as a leader in decarbonizing air transport.
Click here to access the article.
CNPE approves resolution to encourage the use of residual oils and fats in biofuel production
On December 10, 2024, the CNPE approved a resolution establishing minimum targets for the use of residual oils and fats in the production of biodiesel, sustainable aviation fuel (SAF) and green diesel.
The targets will be defined by an Interministerial Ordinance issued by the MME and the Ministry of the Environment and Climate Change (“MMA”), following an AIR. The resolution is in line with the Fuel for the Future Law (Law No. 14,993/24), which encourages sustainable mobility and the use of low-carbon fuels, reinforcing Brazil’s commitment to decarbonization and the fight against climate change.
The measure also aims to reduce the improper disposal of residual oils and fats, which can contaminate water resources, affect aquatic fauna and flora, and compromise the efficiency of sewage treatment plants, increasing operating costs and the risk of flooding.
Click here to access the article.
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