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Energy Newsletter | December 2024

January 23rd, 2025

In order to keep our clients informed about the current landscape of the main energy and natural resources sectors in Brazil, we have prepared the Energy Newsletter, a monthly bulletin with the main news of the energy market.

This information channel is the result of the collaboration between our “Oil & Gas” and “Energy” teams.

The newsletter was designed within the context of the energy transition that is being targeted in Brazil, and drafted as a complete source of information about the dynamic Brazilian energy market within the oil, natural gas, electricity and renewable energy sectors.

Enjoy reading!

This newsletter is for informative purposes only and does not constitute legal advice for any specific operation or business. For more information, please contact our legal team.

Some or all hyperlinks in this newsletter may be available only in Portuguese

Oil and Gas

HIGHLIGHTS

Concession Open Acreage: 306 blocks in six sedimentary basins approved

On December 19, 2024, the Board of Directors of the Brazilian National Agency of Petroleum, Natural Gas and Biofuels (“ANP”) approved the appointment of 306 exploration blocks to the list of blocks under study for possible inclusion in the Concession Open Acreage (“OPC”).

164 of the offshore blocks are located in the Pelotas Basin and 33 in the Santos Basin (southern portion), as well as blocks in the onshore portions of the Recôncavo (60), Potiguar (10), Sergipe-Alagoas (24) and Espírito Santo (15) basins.

Click here to access the article.

 

Brazil to have record number of barrels made available at next Federal Government’s Oil Auction and plans first gas auction for 2025

On December 05, 2024, the Ministry of Mines and Energy (“MME”) announced that Brazil will sell 78 million barrels of oil in the next federal auction, scheduled for June 2025.

The sale was announced during the Technical Forum of Pré-Sal Petróleo (“PPSA”), a company linked to the MME and in charge of the Federal Government’s oil and gas sales. In addition, the company announced that the Federal Government’s first natural gas auction should be held in the fourth quarter of 2025.

The MME has coordinated efforts to ensure efficiency in oil production and marketing processes, boosting the sector’s competitiveness. In addition, the sale of oil is strategic for Brazil’s energy security and economic development, generating jobs and income for the population.

The 5th Federal Government Auction will be the largest ever held, with emphasis on the Mero Field, which will account for 51.5 million barrels. The first natural gas auction is scheduled for the fourth quarter of 2025 and is expected to be an important milestone, as the Federal Government will offer volumes from shared contracts and uncontracted areas.

Click here to access the article.

 

NEWS

CNPE sets minimum local content of 50% for building new oil tankers in Brazil

On December 10, 2024, the CNPE approved a resolution establishing minimum targets of local content for the construction of new tanker vessels in Brazil.

Investments will thus be directed towards contracting local suppliers, encouraging the transfer of technology, job creation and the strengthening of Brazilian industry.

According to the resolution, new oil tankers must have an overall minimum index of 50% local content, which includes goods produced and services provided in Brazil during the execution of the construction contract. The percentage covers investment groups such as engineering services, machinery and equipment, as well as the construction and assembly of the vessels.

Once the CNPE has defined the minimum local content, the ANP will be responsible for monitoring and measuring compliance with the indexes, in accordance with the guidelines established by the CNPE in the new resolution.

Click here to access the article.

 

MME regulates issuance of debentures to boost investment projects in the oil, gas and biofuels sector

On December 11, 2024, the MME published an ordinance regulating the procedures for classifying priority projects in the energy sector, covering natural gas, biofuels, biogas, low-carbon synthetic fuels and pipelines for transporting fuels.

The initiative seeks to streamline fundraising through incentivized and infrastructure debentures, which offer tax advantages to investors and have become an important tool for financing strategic infrastructure in Brazil.

The ordinance establishes detailed criteria for projects to be considered a priority and allowed to issue these bonds. Sectors covered include the production of biofuels and biogas (except at the agricultural stage), synthetic fuels with low carbon intensity and the construction of pipelines for fuel transportation.

The new rules will streamline the process for issuing debentures, eliminating the need for a specific ordinance to approve each project. However, bidders will still have to submit all the necessary documentation for analysis to the MME’s National Secretariat for Petroleum, Natural Gas and Biofuels (“SNPGB”).

Click here to access the article.

 

Open Acreage: ANP releases dynamic dashboard with information on available areas and areas already tendered

On December 26, 2024, the ANP released a new version of the Open Acreage Dynamic Dashboard.

In addition to displaying the blocks or areas available in the OPC protocol, the interactive tool also provides consultations on blocks and areas that have already been previously tendered, both in the OPC and in the Production Sharing Open Acreage (“OPP”).

In the case of the OPC, the dashboard shows the total number of blocks or areas available in the current tender protocol, published on December 19, 2024, as well as the results of the four previous cycles. As for the OPP, the results of the two cycles already carried out are available.

Click here to access the article.

 

POWER 

HIGHLIGHTS

TRF-1 orders compensation for generation cuts at wind and solar power plants

On December 12, 2024, the Brazilian Association of Photovoltaic Solar Energy (“Absolar”) and the Brazilian Association of Wind Energy (“ABEEólica”) obtained a preliminary injunction from the Federal Regional Court of the 1st Region (“TRF-1”), which ordered financial compensation for their members, wind and solar generators, corresponding to generation cuts (the so-called “constrained-off”) determined by the National Electric System Operator (“ONS”).

In this legal action, the associations are challenging the rules of the National Electric Energy Agency (“ANEEL”), which establish that only one type of constrained-off (reason for external unavailability) can be compensated.

The court decision held that ANEEL exceeded its regulatory powers by restricting financial compensation for generation cuts and therefore determined that ANEEL provide full compensation to generators associated with Absolar and ABEEólica concerning all constrained-off operation events that have occurred since the ruling was issued, regardless of classification or hour deductibles. This compensation will take place as of the next processing report for the financial settlement of the short-term electricity market, published by the Chamber of Electric Energy Commercialization (“CCEE”).

Access the ruling in full.

 

A-5 Auction guidelines established

On December 20, 2024, the Ministry of Mines and Energy (“MME”) published Ordinance No. 95/2024, which established the guidelines for the 2025 “A-5” New Energy Auction. The auction will take place on July 25, 2025, and is aimed at contracting Small Hydroelectric Plants (“SHPs”), Hydroelectric Generating Plants (“HPPs”) and Hydroelectric Power Plants (“HPPs”) with power equal to or greater than 50 MW, as well as the expansion of existing SHPs, HPPs or HPPs with power equal to or less than 50 MW, with a supply period starting in January 2030, and a duration of 20 years. 

The energy reference price for the auction will be based on the 2019 A-6 Auction, updated up to the notice’s publication date.

Interested parties must apply for registration and technical qualification by February 07, 2025, while distribution agents must submit their statement on the need to purchase electricity between February 03 and 10, 2025.

Access Ordinance No. 95/2024.

 

 

Energy trading rules changed

On December 10, 2024, Normative Resolution (“REN”) No. 1,110/2024 was published, which revised the regulations on energy trading and retail energy trading activities. The regulation resulted from Public Consultation (“CP”) No. 028/2023.

Among the main changes, we highlight the reduction of the deadline for manifestation when a procedure for disconnection from the CCEE is initiated to five days (the previous deadline was 10 days) and the obligation for the CCEE to publish periodic reports on the monitoring of retail energy trading, respecting the limits established by general data protection legislation.

Access REN No. 1,110/2024.

 

 

Renewables and other Energy Sources 

HIGHLIGHTS

ANP to revise regulations for authorizing biofuel production

On December 13, 2024, the ANP Board of Directors approved the revision of ANP Resolution No. 734/2018, which defines the requirements for authorizing the production of biofuels. The proposed changes are based on a regulatory impact analysis (“AIR”) carried out by the ANP, and its final report was approved by the board. These changes aim to improve the operational safety of facilities, guarantee supply and continuity of operations, simplify the authorization process and expand the list of products under RenovaBio.

Among the main new features of the draft resolution, biofuel producers are those who produce fuel exclusively from biomass at authorized facilities. In addition, activity authorizations (AEA) are now for the production of biofuels in general, allowing for new products specified by the ANP. A ban was also imposed on the sale and storage of biofuels in facilities that have been paralyzed for one year.

Changes to the text of the resolution include:

  • the reinforcement that the legal entity must have a compatible National Classification of Economic Activities (“CNAE”) to produce biofuels;
  • the need for a separate Corporate Taxpayer ID (“CNPJ”) for the production of biofuels, except for refineries and Natural Gas Processing Units (“NGPUs”); and
  • the restriction on the purchase and sale of biofuels, which can only be carried out by the authorized production facility, and not by unauthorized administrative establishments or branches.

The revised draft will be submitted for public consultation and hearing.

Click here to access the article.

 

Law that drives crucial advances for the biofuels sector and the Renovabio Program is approved

On December 30, 2024, the President of Brazil sanctioned Law No. 15.082, which provides for the National Biofuels Policy (RenovaBio).

RenovaBio is a program to decarbonize the transport system and aims to increase the production of biofuels in Brazil.

By amending Law No. 13,576 of December 26, 2017, the current text improves the sector’s regulatory framework and now includes certified plants and raw material suppliers in the distribution of Decarbonization Credits (“CBIOs”).

Law No. 15,082 also improves regulation of the sector, implementing measures such as increased fines for agents who fail to meet their established targets. In addition, it amends Law No. 9,478, of August 06, 1997, on proof of stock for withdrawing biodiesel.

As a result, distributors who fail to meet their individual targets will be banned from selling fuels, and failure to meet decarbonization targets will be classified as an environmental crime.

Click here to access the article.

 

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.

 

OPPORTUNITIES

TIPO DESCRIÇÃO PRAZO DE CONTRIBUIÇÃO CÓDIGO / OBSERVAÇÕES
Petrobras Contracting GMP 14162-24 – Multimedia Communication Services – SCM January 24, 2025

12:00 PM

7004341537
Petrobras Contracting Chartering of AHTS vessel and Specialized Technical Services March 14, 2025

12:00 PM

7004345558
Petrobras Contracting Helicopter chartering to service the Búzios field – Lots I and J. January 28, 2025

12:00 PM

7004320835

 

Petrobras Contracting Chartering of MPSV type vessel and Specialized Services.

 

February 25, 2025

12:00 PM

7004338955
Petrobras Contracting Supply of FPSO-type Stationary Production Unit (SPU) and Pre-operation, Operation and Maintenance Services, in BOT mode, for SEAP II with the option of supplying an additional FPSO.

 

June 16, 2025

12:00 PM

7004338481
Petrobras Contracting Chartering of three WSSV-type vessels, provision of specialized technical services for chemical treatments, stimulation and the like, in oil, gas and other wells, as well as in lines and pipelines, and supply of chemical products. March 14, 2025

12:00 PM

7004331236
Petrobras Contracting Helicopter chartering to service the Búzios field – Lots I and J.

 

January 28, 2025

05:00 PM

7004320835
Petrobras Contracting EPC HIDW AND HCC GASLUB March 31, 2025

12:00 PM

7004269219               
Petrobras Contracting EPC HDT, UTAA and UTCR GASLUB March 31, 2025

12:00 PM

7004269577
Petrobras Contracting EPC UGH GASLUB March 31, 2025

12:00 PM

7004269429
Petrobras Contracting EPC URE, MDEA, AMMONIA AND TAIL GAS GASLUB March 31, 2025

12:00 PM

7004269503
Petrobras Contracting EPCS for completion of the remainder April 30, 2025

12:00 PM

7004278431               
Petrobras Contracting Chartering of RSV vessel and Specialized Technical Services February 07, 2025

12:00 PM

7004319394
Petrobras Contracting EPC Laboratory and Gaslub Buildings March 24, 2025

12:00 PM

7004297814
Petrobras Contracting Detailed engineering, demolition and dismantling, civil construction, electromechanical assembly, supply of goods, technical assistance, commissioning and assisted operation services. February 24, 2025

05:00 PM

7004314826
Call for Contributions (“TS”) ANEEL    
TS No. 08/2024 Obtain contributions on the regulation of Decree No. 11,314, of December 28, 2022. February 10, 2025
TS No. 025/2024 Obtain contributions to improve the ANEEL Reference Price Bank, used in the authorization, concession bidding and tariff review processes for electricity transmission concessionaires, in accordance with Ratifying Resolution No. 758/2009. January 31, 2025
TS No. 026/2024 Obtain contributions to discuss the validation of version 20.5.3 of the very short-term hydrothermal dispatch model (DESSEM, from version 21 onwards), to be used in the context of Operation Planning and Programming and the establishment of the Difference Settlement Price, from the Monthly Energy Operation Program of April 2025. January 30, 2025
TS No. 027/2024 Disclose information on the implementation of Tariff Sandboxes projects and receive contributions on how ANEEL should communicate the partial and final results of such projects. February 28, 2025
TS No. 028/2024 Obtain contributions regarding the updating of Submodules 7.14 – Procedural and Responsibilities and SM 7.15 – Procedural and Responsibilities of the Grid Procedures. February 13, 2025
CPS (ANEEL)

CP No. 045/2019

Obtain contributions to establish the operating criteria for reduction or limitation of generation. February 10, 2025

Phase 2 of CP No. 039/2023

Obtain contributions on the improvement of the Regulatory Impact Analysis Report about the regulations for storing electric power, including reversible power plants. January 30, 2025

CP No. 038/2024

Obtain contributions on the proposed budget for the 2025 Energy Development Account and the annual quotas to be paid by electricity distribution and transmission agents that serve end consumers.  January 27, 2025

** Please note that the deadlines in the table above are constantly changing, so the information mentioned above corresponds to deadlines published at the time of publication of this newsletter.

 

WHATS COMING UP

March/2025 – Transmission Auction 001/2025

To be held by ANEEL.


July 25, 2025 – Auction A-5

To be held by ANEEL.


July/2025 – Auction for Contracting Capacity Reserve

To be held by ANEEL.


August/2025 – New Energy Auctions “A-4” and “A-6”

To be held by ANEEL.

September/2025 – Transmission Auction 002/2025

To be held by ANEEL.


October/2025 – Auction for the Supply of Isolated Systems

To be held by ANEEL.


November/2025 – Auction for Contracting Capacity Reserve

To be held by ANEEL.


December/2025 – Existing Energy Auctions “A-1” and “A-2″

To be held by ANEEL.


March/2026 – Transmission Auction 001/2026

To be held by ANEEL.

September/2026 – Transmission Auction 002/2026

To be held by ANEEL.

 

Related Partners

Related Lawyers

Arthur Azerêdo Alencar Feitosa

aazeredo@demarest.com.br

Bianca Reis

breis@demarest.com.br

João Raphael Oliveira Aranha

jaranha@demarest.com.br

Laura Isabelle Guzzo

lguzzo@demarest.com.br

Lívia Sousa Borges Leal

lleal@demarest.com.br

Luis Eduardo Ribeiro

lribeiro@demarest.com.br

Roberta Coelho de Souza Batalha

rsbatalha@demarest.com.br

Thais Araujo Rato Tarelho

ttarelho@demarest.com.br


Related Areas

Oil and Gas Energy and Natural Resources

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