Energy and Natural Resources Newsletter | August 2026

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 unification of our “Oil & Gas” and “Power” newsletters, designed in the context of the energy transition that is being targeted in Brazil, and prepared to be a complete source of information about the dynamic Brazilian energy market in 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 team of lawyers.

OIL AND GAS

HIGHLIGHTS

ANP announces sectors and blocks to be included in upcoming permanent offer cycles

The Special Bidding Commission of the National Agency of Petroleum, Natural Gas, and Biofuels (“ANP”) announced, through notices published in the Federal Official Gazette, the sectors and blocks that will be included in the 6th Cycle of the Open Acreage Concession (“OPC”) and the 4th Cycle of the Open Acreage Production Sharing (“OPP”). In the 6th OPC Cycle, 22 exploratory block sectors and 2 sectors containing marginal accumulations will be offered, while the 4th OPP Cycle will comprise 13 blocks. The public offer sessions for both bidding rounds are scheduled for October 7, 2026. According to the ANP, this will be the production sharing cycle with the highest number of blocks since the launch of the Open Acreage.

For a sector or block to be included in the public sessions, it must receive a declaration of interest from one or more companies, accompanied by the corresponding bid guarantee. As of the date of the announcement, the sectors offered under the OPC had received declarations of interest from 12 companies with active registration, while the OPP blocks had received declarations from 6 companies. Companies with active registration could submit declarations of interest for the announced sectors and blocks until August 31, 2026, including those that had already expressed interest in other sectors or blocks and wished to expand their participation. Companies that did not submit a declaration within this deadline could still participate in the bidding process through a consortium with a company that had done so, subject to the rules set forth in the OPC and OPP bidding notices.

The holding of two new 2026 Open Acreage cycles reinforces the ANP’s strategy of maintaining a continuous supply of areas for oil and natural gas exploration and production, which remains the principal bidding model currently in force in Brazil. The increase in the number of sectors and blocks being offered highlights the regulatory interest in strengthening exploration activities and expanding investment opportunities across Brazil’s sedimentary basins.

Learn more: Open Acreage: 6th Concession Cycle to include 22 sectors and 4th Production Sharing Cycle to offer 13 blocks

ANP approves report and launches public consultation on Gas Release program

The ANP’s Board of Directors approved the Regulatory Impact Analysis (“AIR”) Report and the opening of a 45-day public consultation, to be followed by a public hearing, with the purpose of gathering contributions on the draft resolution establishing the Natural Gas Market Concentration Reduction Program, known as the Gas Release Program.

The initiative stems from a regulatory assessment conducted by the ANP on mechanisms capable of increasing competition in the Brazilian natural gas market. As part of the AIR, the agency concluded that, despite the progress achieved following the enactment of Law No. 14,134/2021 (the “New Gas Law”) and the entry of new market participants into the sector, natural gas supply remains concentrated, which may limit competitive dynamics and hinder market development.

To address this scenario, the ANP examined different regulatory alternatives, including maintaining the current framework and adopting various market deconcentration mechanisms. Based on its analysis and the contributions received during the public participation stages, the agency identified the implementation of a moderate Gas Release model as its preferred alternative, aimed at fostering competition without compromising investment attractiveness and the expansion of supply.

The draft resolution to be submitted for public consultation establishes the rules for implementing the program, which provides for the holding of natural gas auctions to encourage the participation of new market entrants and make the market more competitive. It also establishes monitoring mechanisms to track the program’s results and assess its effects on the market.

The proposal is part of Regulatory Action No. 2.7 of the ANP’s 2025-2026 Regulatory Agenda and is grounded in the New Gas Law, which grants the agency authority to monitor market performance and adopt mechanisms designed to promote efficiency, competitiveness, and the reduction of concentration in the supply of natural gas.

Learn more: Gas Release: ANP approves report and launches public consultation on program to enhance competition in the natural gas market

Complementary Bill on Fuels is sanctioned

The President of the Republic signed Supplementary Bill No. 114/2026, which provides for the reduction of federal tax rates levied on the importation, production, and commercialization of road diesel, biodiesel, gasoline, ethanol, and aviation kerosene. The measure confirms the text approved by the National Congress by a vote of 318 to 113, with 1 abstention, in the Chamber of Deputies, and by a vote of 61 to 2 in the Federal Senate. The bill was introduced in response to rising fuel prices resulting from instability in the international oil market linked to conflicts in the Middle East.

Under the bill, the revenue loss resulting from the tax reductions may be offset by the extraordinary increase in revenues earned by the Federal Government from the oil sector as a result of higher international oil prices, including royalties and other government takes. To enable this framework, the bill provides that, if the bimonthly revenue and expenditure report issued prior to the submission of the proposed budget to Congress forecasts a deficit, expenditures arising from statutory earmarks exceeding the fiscal framework ceiling will be prohibited. The bill also includes measures aimed at protecting the competitiveness of biofuels, requiring that any tax reduction applicable to fossil fuels preserve the differential in favor of biofuels that existed before the conflict. In addition, it establishes subsidies of up to BRL 1.2 billion for hydrated ethanol producers and cooperatives, as well as the possibility of offsetting up to BRL 750 million in PIS/COFINS tax credits.

During its legislative process, the original bill was expanded to incorporate provisions on various topics, including the possibility of creating tax credits of up to BRL 5 billion for the production of fertilizers, raw materials, remineralizers, and bioinputs between 2027 and 2031, incentives related to hosting the 2027 FIFA Women’s World Cup, and the establishment of expenditure-containment mechanisms for fiscal-deficit scenarios.

Learn more: Complementary Bill No. 114/2026

NEWS

Federal District Court suspends offering of 18 exploratory blocks

According to information published by Agência Eixos, the 6th Federal Civil Court of the Federal District Judicial Section ordered the definitive suspension of the offering of 18 oil and natural gas exploratory blocks located in the Potiguar, Sergipe-Alagoas, and Espírito Santo Basins. The ruling, issued on August 10, 2026, was rendered in the Public Civil Action brought by the Arayara International Institute against the ANP, the Federal Government, and the president of the National Energy Policy Council (“CNPE”). The decision also determined that no new bidding rounds involving these blocks may be conducted without unequivocal evidence of the technical and environmental compliance of the offering, supported by favorable opinions issued by the competent environmental authorities.

According to the report, the federal substitute judge assigned to the case based the decision on the fact that the blocks overlap with conservation units, breeding areas of endangered species, and territories of high biodiversity relevance. Agência Eixos notes that the judge emphasized that, although the Federal Supreme Court (“STF”) has recognized environmental licensing as the stage at which the sustainability conditions of auctioned areas should be assessed, that understanding does not authorize the Public Administration to offer any area without first identifying, with a reasonable degree of certainty, whether minimum environmental sustainability conditions for exploration can be ensured.

The decision highlights the tension between the policy of expanding the supply of exploratory areas and the requirement for prior environmental oversight, an issue that is likely to have implications for upcoming Open Acreage cycles.

Learn more: Federal District Court suspends offering of 18 oil and natural gas exploratory blocks

New policy strengthens fraud prevention and operational oversight in the fuel sector

The Ministry of Mines and Energy (“MME”) and the National Energy Policy Council (“CNPE”) published, in the Federal Official Gazette, a resolution establishing guidelines to combat fraud and adulteration in the fuel and petroleum products market and recognizing the matter as relevant to the National Energy Policy. The regulation provides for the strengthening of the ANP’s enforcement activities, covering agents authorized to operate in the production, importation, distribution, and retail sale of fuels through preventive and corrective measures carried out either on-site or remotely.

Among the guidelines established by the resolution are the intensification of enforcement activities, including in coordination with other oversight authorities, as well as the assessment of preventive maintenance plans adopted by regulated entities, with ongoing monitoring of the integrity of assets and equipment and the requirement to submit periodic reports to the ANP. The regulation seeks to identify failures at an early stage and enhance the reliability and operational safety of facilities across the sector.

According to the publication, the resolution also provides for the adoption of electronic recordkeeping for fuel inventories, prices, and purchase and sale transactions by fuel retailers, and recommends that the ANP update the applicable regulations and standardize the electronic submission of information. This digitalization initiative aims to enhance product traceability, make tax evasion and the commercialization of off-specification fuels more difficult, and strengthen consumer protection.

Learn more: Federal Government publishes guidelines to combat fraud in the fuel market

ANP presents exploration activity results and outlook for the sector

The ANP held the seminar Panorama da Exploração: Dados, Transparência e Regulação (Exploration Overview: Data, Transparency, and Regulation), bringing together representatives from the agency and the oil and gas exploration and production (“E&P”) industry. During the event, the ANP released its 2025 Annual Exploration Report, which provides an overview of exploration activities in Brazil between 2016 and 2025 and compiles information on contracts, exploration activities, declarations of commerciality, and planned investments in the sector. Opening the event, ANP Director-General Artur Watt highlighted initiatives aimed at improving the regulatory framework governing the exploration phase and enhancing the transparency of industry information.

According to the report, 2025 ended with 431 exploratory blocks under contract, the highest number since the ANP’s creation, representing an increase of approximately 3% compared to 2024. During this period, 36 new concession agreements were executed, and 19 exploratory wells were spudded, compared to 10 in the previous year. The period also recorded 13 oil or natural gas discovery notifications and five declarations of commerciality.

The event consisted of two panels. The first addressed the performance of the exploration segment based on the findings of the 2025 Annual Exploration Report. The second focused on assessing the implementation of ANP Resolution No. 983/2025, which established the requirements and procedures for compliance with the Minimum Exploratory Program outside the boundaries of the original contract area, after one year in force. The initiative forms part of the ANP’s efforts to foster exploration activities and build a transparent and competitive regulatory environment capable of attracting investment to the sector.

Learn more: ANP seminar presents 2025 exploration activity results

CNPE sets guidelines for federal natural gas auctions, prioritizing basic industries

CNPE Resolution No. 15/2026 was published in August, establishing the rules for future federal natural gas auctions and reinforcing the Federal Government’s strategy of using this gas as an industrial policy tool. The main focus of the regulation is to direct the supply to so-called “basic industries”, such as the chemical, petrochemical, fertilizer, and steel sectors. In short-term auctions, with deliveries through 2030, these industries will have priority in acquiring volumes. In long-term structural auctions, however, classification as a basic industry becomes a requirement for accessing federal government gas, in addition to the need to demonstrate the creation of new productive demand or the expansion of industrial capacity.

The resolution also seeks to stimulate competition and the development of the Brazilian natural gas market. To this end, it allows suppliers other than the Federal Government to participate in the auctions, including domestic producers, gas importers, and, in certain auctions, biomethane suppliers. In addition, Pré-Sal Petróleo S.A. (“PPSA”) may allocate part of the volumes to the spot market, with the aim of contributing to the establishment of price benchmarks in the country. In the event of a surplus of gas not contracted by the basic industry, these volumes may be sold at market prices to free consumers, marketers, transporters, and state distributors.

Another important aspect of the rule is the establishment of guidelines for the pricing of federal government-owned natural gas and for the operational relationship with Petrobras, which acts as the trader of these volumes. The resolution provides for mechanisms related to infrastructure sharing and even the possibility of exchanging natural gas liquids as part of the compensation for these services. The text also grants the MME the authority to issue supplementary regulations, if necessary, allowing for future adjustments to the implementation of the auctions. According to the government, the measure is part of a strategy to expand the supply of natural gas in the country, increase industrial competitiveness, and reduce the cost of this input for sectors considered strategic to the Brazilian economy.

Learn more: CNPE resolution reaffirms basic industries as a priority in federal gas auctions; see the key points

CAMEX extends oil export tax for another 60 days

The Brazilian Chamber of Foreign Trade (“CAMEX”) approved a 60-day extension of the export tax on crude oil, maintaining the 12% rate, according to reports from Valor Econômico and Eixos. The decision marks the second extension of the measure and was made even after the publication, on the same day, of a preliminary injunction suspending the collection of the tax.

The practical effect of the decision remains limited as long as the preliminary injunction suspending the collection remains in effect. The Federal Government, however, is considering appealing the decision: the Attorney General’s Office of the National Treasury stated that it is analyzing the appropriate legal remedies to reverse the measure, on the grounds that the tax is regulatory in nature.

The decision to maintain the tax rate is related to the international context and the impacts of the crisis in the Middle East on global oil prices and logistics. Government officials defended continuing the tax, arguing that escalating geopolitical tensions have increased risks for the international market and justified maintaining the 12% rate, ruling out alternatives that had previously been discussed, such as reducing it to 6%.

Learn more: CAMEX approves extension of the export tax on oil

ENERGY AND NATURAL RESOURCES

NEWSLETTER

Institutional

MME: Decree establishes timeline for opening the free energy market to low-voltage consumers

The Federal Government has issued a decree establishing the timeline for the opening of Brazil’s free energy market to low-voltage consumers. Under the new rules, consumers supplied at voltages below 2.3 kV, such as small businesses and industries, will be able to migrate to the free market as of November 25, 2027, while residential consumers will gain access to the free market as of November 25, 2028. The decree also establishes the Supplier of Last Resort (Supridor de Última Instância – “SUI”), a mechanism designed to ensure continuity of electricity supply in the event of default or withdrawal of the supplier chosen by the consumer.

• Access Decree No. 13,097/2026

CCEE: Chamber assumes central registry of low-carbon hydrogen certificates in Brazil

The Electric Energy Commercialization Chamber (“CCEE”) will manage the Central Registry of the Brazilian Hydrogen Certification System (“SBCH2”), pursuant to a federal decree published in August 2026. Under the measure, the CCEE will be responsible for managing the database and official certification records for low-carbon hydrogen, in coordination with the Management Committee of the National Hydrogen Program (“Coges-PNH2”). The National Agency of Petroleum, Natural Gas and Biofuels (“ANP”) will act as the regulatory authority, while the National Institute of Metrology, Quality and Technology (“Inmetro”) will be responsible for accrediting certification bodies.

• Access CCEE’s announcement

EPE and ONS publish technical note on the remaining capacity of the National Interconnected System for the 1st Access Window

The Energy Research Office (“EPE”) announced the publication of Technical Note No. NT-ONS DPL 0083/2026, prepared jointly with the National Electric System Operator (“ONS”), establishing the available remaining capacity of Brazil’s National Interconnected System (“SIN”) for the 1st Access Window of 2026. The document, published on August 31, 2026, complies with the guidelines set forth in Decree No. 12,772/2025 and MME Normative Ordinance No. 129/2026, which require the disclosure of remaining capacity levels for system busbars, subareas, and areas, covering both generation and consumption segments.

The publication represents an important step in the implementation of the new access framework for the Transmission Grid (Rede Básica), providing key information for assessing the availability of electrical infrastructure and supporting the planning of new generation projects and loads to be connected to the SIN.

• Access the tecnical note

Regulation

MME: Compensation agreement for curtailment attracts interest from 1,539 renewable power plants

The agreement proposed by the MME to compensate generation curtailment affecting wind and solar power plants has received expressions of interest from 1,539 projects, representing approximately 53 GW of installed capacity. This volume corresponds to around 91% of the capacity eligible for the mechanism, which seeks to compensate restrictions incurred between September 2023 and November 2025 pursuant to Law No. 15,269/2025. Participation at this stage does not guarantee entitlement to compensation, but allows market agents to take part in the upcoming phases of the verification process conducted by the ONS and the CCEE.

• Access Agência Infra’s report

MME: Ministry launches public consultation on new ERCAP cost allocation methodology

On August 24, 2026, the MME launched a public consultation to improve the cost allocation rules for the Capacity Reserve Charge (“ERCAP”) within the SIN. Aligned with Law No. 15,269/2025, the proposal establishes that the allocation of the charge will be based on agents’ electricity consumption during periods of highest net system demand, rather than on each agent’s individual monthly peak demand. The critical period may encompass up to four consecutive hours on business days, as determined by the ONS. According to the MME, the measure aims to encourage consumption shifting to periods of lower grid load, reducing costs for consumers with operational flexibility. The proposal also includes guidelines for energy storage, demand response mechanisms, participation of generators in ERCAP cost allocation, and adjustments to the Energy Reserve Charge (“EER”) calculation.

• Access the Ministry’s announcement

MME: Ministry launches public consultation on electricity trading, energy storage, and the free energy market

Also on August 24, 2026, the Ministry launched another public consultation to discuss a draft decree updating Decrees No. 5,163/2004, No. 2,655/1998, and No. 5,177/2004, in accordance with Law No. 15,269/2025 and the full opening of the electricity market. The proposal includes amendments to rules governing electricity trading, energy contracting, formation of the Settlement Price for Differences (“PLD”), settlement of the Short-Term Market (“MCP”), and sectoral charges. The text also incorporates energy storage into the regulatory framework, creates the category of independent storage operators within the CCEE, updates migration rules to the Free Contracting Environment (“ACL”), and revises mechanisms applicable to distribution companies, self-producers, and suppliers of last resort. The measures seek to improve the functioning of the free market and adapt regulation to new business models in the electricity sector.

• Access the Ministry’s announcement

MME: Ministry launches public consultation on the TFSEE applicable to electricity traders

On August 24, the MME launched a third public consultation to discuss the calculation methodology for the Electric Energy Services Inspection Fee (“TFSEE”) applicable to electricity trading companies, in accordance with Law No. 15,269/2025. Contributions will be received for 45 days, and the initiative aims to define criteria reflecting the specific characteristics of the energy trading market, while observing the principles of proportionality, reasonableness, and taxpayers’ ability to pay. The TFSEE, established by Law No. 9,427/1996 to fund inspection activities carried out by the National Electric Energy Agency (“ANEEL”), was already collected from generation, transmission, and distribution agents and will now also apply to electricity traders. The measure forms part of the regulatory adaptation process resulting from the electricity sector reform and may impact these agents’ cost structure and regulatory obligations.

• Access the Ministry’s announcement

ANEEL: Agency sets RGR quotas for generation and transmission concessionaires for the 2026/2027 cycle

ANEEL has established the Global Reversion Reserve (“RGR”) quotas for the 2026/2027 cycle, applicable to 108 electricity generation and transmission concessionaires. The quotas total approximately BRL 470 million and cover the period from July 2026 through June 2027, including adjustments relating to 2025 and prior years. The amounts will be collected monthly through the CCEE and are payable by concessionaires subject to the charge under the applicable sector legislation.

• Access Order No. 2,922/2026

System Operation

CMSE: Committee reinforces measures to ensure supply security amid El Niño concerns

During its 322nd ordinary meeting, the Electric Sector Monitoring Committee (“CMSE”) reinforced preventive measures aimed at ensuring electricity supply security in 2026, considering the possibility of a strengthening El Niño phenomenon during the second half of the year. Measures highlighted include intensive monitoring of hydrometeorological conditions, reservoir preservation efforts, monitoring of fuel supplies to isolated systems in Brazil’s Northern region, and coordination with public authorities and industry participants to implement preventive actions focused on system reliability. In connection with El Niño, the ONS also launched a dedicated section on its website to provide news and informational materials about the phenomenon.

• Access the news
• Access the ONS website

ONS: System operator activates surplus management plan for the second time

The ONS reported that it activated its surplus management plan on August 23, 2026, for the second time this year, aiming to preserve the operational security of the SIN in light of expectations of minimum load levels. The measure involved the preventive management of approximately 1 GW between 11:00 a.m. and 1:30 p.m.

• Access the ONS announcement

System Data

ONS: System operator makes Demand Response data available through Open Data Portal

The ONS has made information on Demand Response programs available through its Open Data Portal, including the historical record of approved bids under the Structural Demand Response Program and dispatches conducted under the Regulatory Sandbox since November 2023. The initiative seeks to enhance transparency regarding the use of this instrument in the operation of the SIN, facilitating access by market participants and society to information related to the resource.

• Access the ONS data

ONS: System operator presents first electricity supply projections for 2027

The ONS presented to the CMSE its first electricity supply projections through January 2027. According to the agency, improved hydrological conditions observed in recent months, particularly in Brazil’s Southern region, have increased SIN reservoir storage levels to approximately 70%, contributing to a more favorable supply outlook. The ONS also highlighted ongoing monitoring of the potential impacts of El Niño in the coming months and the need for additional thermal generation to meet peak demand between August 2026 and January 2027.

• Access the news release

CCEE, ONS, and EPE: Entities revise load forecasts for 2026-2030

The CCEE, ONS, and the EPE published the second four-month review of load forecasts covering the period from 2026 to 2030. The study projects average annual growth of 4.5% in SIN load, reaching 101,947 average MW by 2030, taking into account factors such as the expansion of distributed microgeneration and minigeneration (“MMGD”), growth in data centers, and the expected effects of the El Niño phenomenon in the coming years.

• Access the detailed projections

Auctions

MME: Ministry opens submission period for demand declarations in Existing Energy Auctions A-1, A-2, and A-3

The MME has opened the submission period for distribution companies to file their energy purchase demand declarations in the A-1, A-2, and A-3 Existing Energy Auctions scheduled for November 2026. The information, which could be submitted through August 21 via the CCEE’s Auction Management System (“SGL”), will support the procurement of electricity from existing generation facilities, with supply periods beginning between 2027 and 2029, contributing to planning for service to the regulated market.

• Access the news release

ANEEL: Agency releases information for investors regarding Transmission Auction No. 4/2026

ANEEL announced the availability and update of Data Room documents relating to Lot 1 of Transmission Auction No. 4/2026-ANEEL, associated with the concession held by Afluente Transmissão de Energia Elétrica S.A. The auction involves nine transmission lots located across nine Brazilian states and aims to award new public service transmission concessions, providing investors with technical, legal, and financial information for evaluating the projects.

• Access the news release
• Access the available documentation

EPE: Energy storage auctions register record number of submitted projects

EPE has completed the registration phase for projects interested in participating in the Capacity Reserve Auctions in the Form of Power through Battery Energy Storage Systems (“LRCAP 2026 – Storage”), recording 6,091 projects totaling 296.8 GW of capacity. The record volume of registrations demonstrates strong market interest in deploying energy storage systems in Brazil and marks another step toward the country’s first auction dedicated to contracting this technology on a large scale.

• Access the documentation

Demarest in the Media

Henrique Reis comments on regulatory uncertainties regarding the funding of the battery auction

Our partner Henrique Reis participated in a report by Agência iNFRA on regulatory discussions surrounding the LRCAP Storage Auction. In the article, Henrique notes that attempts to anticipate, within the public consultation on the auction notices, definitions regarding the allocation of charges and obligations applicable to generators should be approached with caution, recalling that, historically, regulations governing charge structures and costs associated with capacity reserve auctions have only been finalized after the auctions themselves were held. According to Henrique, it is appropriate for ANEEL to define the funding model through a specific regulatory proceeding, allowing both the regulatory and legislative debate to mature. Henrique also highlighted the existence of an ongoing legislative discussion on the matter, including the possibility of reviewing the rule introduced by Law No. 15,269/2025, which assigns the costs of contracting energy storage systems to generation agents.

• Access the report

Henrique Reis analyzes strong market interest in Brazil’s first battery auction

Henrique Reis also commented to Agência iNFRA on the registration results for the first LRCAP Storage Auction, which totaled 296.8 GW of registered capacity, exceeding the installed capacity of the SIN. In his assessment, the significant volume is not surprising and is largely attributable to the more flexible rules applicable during the registration phase, which reduced barriers to entry and encouraged broad participation by market players. The partner also highlighted the impact of the locational bonus mechanism established for certain regions, particularly in the Northeast, which may increase the competitiveness of projects located in priority areas defined by the MME. According to Henrique, these factors help explain the strong market interest and the concentration of projects in specific locations, reinforcing the auction’s attractiveness for investors and developers.

• Access the article

Henrique Reis analyzes cost allocation in battery storage LRCAP auctions

Also in August, our partner Henrique Reis co-authored an article published by MegaWhat discussing one of the central issues surrounding the implementation of the LRCAP Storage Auctions: the allocation of contracting costs. In the article, the authors analyze the changes introduced by Law No. 15,269/2025, which assigned generation agents responsibility for the costs of contracted energy storage systems, and argue that costs associated with the system attributes provided by batteries, such as capacity, operational flexibility, and mitigation of generation constraints (curtailment), should be shared among all end users of the SIN. The article also examines the potential regulatory and economic impacts of this allocation model on future auctions, the expansion of renewable energy sources, and tariff affordability in Brazil’s electricity sector.

• Access the article

ANEEL: Allocation of proceedings

In August, new proceedings were randomly assigned and distributed among ANEEL’s board members. Among the cases assigned, we highlight the following due to their scope and subject matter:

MONITORING

Brazilian Congress – Highlights

Federal Court of Accounts (“TCU”)

National Energy Sector Agenda – August and September

Auctions

OPPORTUNITIES

* Please note that the deadlines in the table above are subject to constant change; therefore, the deadlines listed here were in effect at the time of this newsletter’s publication.

RENEWABLES

HIGHLIGHTS

Decrees regulating SAF, CCS, and low-carbon hydrogen markets are published

Decrees regulating sustainable aviation fuel (“SAF”), carbon capture and geological storage (“CCS”), and low-carbon hydrogen have been published in the Federal Official Gazette. The measures, anticipated since 2024, represent a significant step toward implementing Brazil’s decarbonization agenda by establishing the regulatory framework necessary to enable investments and structure new markets related to the energy transition.

With respect to low-carbon hydrogen, the regulations establish the foundations for the operation of the Brazilian Hydrogen Certification System (“SBCH2”) and for the qualification of projects under the Special Incentives Regime for Low-Carbon Hydrogen Production (“Rehidro”). Among the requirements are minimum local-content thresholds and mandatory investments in Research, Development, and Innovation (R&D&I), measures intended to foster the development of the domestic production chain and increase Brazilian industry’s participation in this emerging market.

The CCS regulations assign to the Energy Research Office (“EPE”) responsibility for preparing studies on the infrastructure required for the development of the activity and grant the ANP authority over matters related to project authorization. With respect to SAF, the decree establishes the National Sustainable Aviation Fuel Certification Program, including mechanisms designed to ensure traceability throughout the production chain, and creates certification and trading instruments for the fuel’s environmental attributes, laying the groundwork for compliance with the emission reduction targets applicable to the aviation sector.

The publication of the decrees marks the beginning of a new regulatory phase, which is expected to involve substantial activity by sectoral authorities in developing complementary regulations. The consolidation of these rules is regarded as essential to providing predictability for investors and enabling the development of large-scale projects focused on renewable fuels, low-carbon hydrogen, and carbon capture technologies.

Learn more: Federal Government publishes decrees on SAF, CCS, and hydrogen

Federal Government publishes CNPE resolution prohibiting biodiesel imports for the mandatory blending requirement

A resolution issued by the National Energy Policy Council (“CNPE”) has been published in the Federal Official Gazette, establishing that biodiesel marketed to meet the mandatory diesel blending requirement must be produced exclusively by domestic facilities.

The measure effectively prohibits the importation of biodiesel for this specific purpose, restoring the previous framework established by CNPE Resolution No. 14/2020 and regulated by ANP Resolution No. 962/2023, under which up to one-fifth of the demand associated with the mandatory blending requirement could be supplied with imported product. The commercialization of imported biodiesel remains permitted for other uses provided for under the applicable regulations.

The decision follows a recommendation contained in an AIR prepared by an interministerial working group established in 2023, which assessed the effects of imports on compliance with the mandatory blending requirement and on the Social Biofuel Seal (SBS). According to the MME, the analyses indicated that domestic supply is compatible with projected demand and that sufficient installed capacity exists to serve the mandatory market.

At the same meeting, the CNPE also approved a resolution facilitating the voluntary use of biodiesel at blending percentages higher than the mandatory level, revoking CNPE Resolution No. 3/2015. For the domestic production sector, the measure represents a significant step toward protecting the captive market against growing imports.

Learn more: Federal Government publishes CNPE resolution prohibiting biodiesel imports for the mandatory blending requirement

ANP launches public consultation on RenovaCalc

The ANP has made available for public consultation new versions of the RenovaBio Carbon Intensity Calculator (“RenovaCalc”) and its corresponding technical documentation, with contributions accepted until September 16, 2026.

The updates were developed by the RenovaBio Technical Group following the publication of ANP Resolution No. 984/2025 and include revisions to the methodological assumptions used in calculating the Energy-Environmental Efficiency Rating (“NEEA”). The proposed changes include the adoption of new databases, updates to greenhouse gas (“GHG”) emission factors, revisions to energy parameters, and methodological enhancements.

According to the agency, the revisions are intended to more accurately reflect the production conditions of the different biofuel value chains while strengthening the technical consistency of the calculations used under the program. The public consultation phase will allow industry participants, academic representatives, and other stakeholders to assess the proposed changes before they are implemented.

RenovaCalc plays a fundamental role in RenovaBio, as it is the tool used to determine the NEEA of certified biofuel producers and importers. This indicator serves as the basis for the issuance of Decarbonization Credits (“CBIOs”) and for the implementation of Brazil’s national decarbonization policy.

Learn more: RenovaBio: ANP launches public consultation on new versions of RenovaCalc

ANP consolidates rules on biomethane specifications and quality control

The ANP’s Board of Directors approved a resolution consolidating and enhancing the rules governing biomethane specifications and quality control, replacing ANP Resolutions No. 886/2022 and No. 906/2022. The regulation was published in the Federal Official Gazette on August 12 as ANP Resolution No. 1,006/2026.

The new resolution consolidates, into a single regulatory instrument, the provisions relating to biomethane specifications and quality control, regardless of the source from which the biomethane is produced. In addition, it incorporates improvements resulting from the regulatory experience gained under the previous framework and updates the testing methods and procedures applicable to quality control. Among the new provisions is the authorization for blending biomethane with natural gas, including injection into transportation and distribution networks, provided that the final product complies with the applicable specifications.

The regulation also expands quality-control requirements, including monitoring parameters such as methane, carbon dioxide, oxygen, sulfur, and hydrogen sulfide content. For biomethane produced from landfills and wastewater treatment plants, additional safety and contaminant-control requirements have been established, including risk assessments using internationally recognized methodologies and the mandatory use of specific filters to retain microorganisms.

The resolution was preceded by an AIR, as well as a public consultation and public hearing process, which enabled the incorporation of stakeholder contributions prior to its final approval by the ANP’s Collegiate Board. The measure is regarded as fundamental to consolidating the sector’s regulatory framework and keeping pace with the development of Brazil’s biomethane market.

Learn more: ANP approves resolution on biomethane specifications and quality control

ANP discusses changes to rules governing anhydrous ethanol commercialization and interharvest inventories

The ANP held a public hearing to discuss a proposal to revise ANP Resolution No. 946/2023, which governs purchases of anhydrous ethanol by fuel distributors and the maintenance of inventories for the sugarcane interharvest period.

The initiative is intended to align the regulation with current market conditions by promoting greater operational efficiency and a more balanced competitive environment among market participants, without compromising supply monitoring and security mechanisms. The proposed changes also seek to harmonize the regulation with the mechanisms established under RenovaBio and the guidelines issued by the CNPE.

Among the matters submitted for consultation are the elimination of the mandatory interharvest inventory requirement, in light of changes observed in the product’s supply dynamics, the preservation of minimum contracting requirements between distributors and producers, and the repeal of the direct purchasing regime currently applicable in certain cases involving non-compliance with contracting targets.

The proposal also includes measures aimed at simplifying regulatory procedures, including the implementation of an electronic system for the automatic registration and validation of contracts. The review forms part of the ANP’s 2025-2026 Regulatory Agenda and takes into account recent developments in the sector, marked by expanded production capacity and increased stability in ethanol supply.

Learn more: Proposed amendments to rules on anhydrous ethanol commercialization and interharvest inventories are the subject of public hearing

Brazil and the Philippines advance partnership for sustainable energy development

Brazil and the Philippines have signed a memorandum of understanding to strengthen cooperation in the energy sector. The agreement is part of Brazil’s strategy to expand international partnerships related to energy security, technological innovation, and the transition to a low-carbon economy.

The memorandum provides for cooperation across several areas, including bioenergy, renewable energy, low-carbon hydrogen, power transmission, and the oil and natural gas sectors. The instrument also encompasses the exchange of information regarding public policies, sector regulation, and strategies aimed at reducing GHG emissions.

In addition to strengthening diplomatic ties, the initiative may expand opportunities for technical cooperation among companies, research institutions, and government authorities. The exchange of experience between the two countries takes place amid growing international interest in energy solutions developed in Brazil, particularly in the fields of biofuels, biomethane, and low-carbon hydrogen.

The execution of the agreement reinforces efforts to establish international cooperation mechanisms capable of fostering investment and promoting the dissemination of technologies associated with the energy transition. Such partnerships have been identified as an important element in accelerating decarbonization efforts and enhancing Brazil’s participation in global clean energy markets.

Learn more: Brazil and the Philippines sign agreement on energy cooperation

ANP Opens Public Consultation on New Model for Monitoring Mandatory Biodiesel Blending

ANP approved a 45-day public consultation and a public hearing to discuss a draft resolution that amends regulations related to biodiesel and the submission of information by regulated entities. The purpose of the proposal is to improve oversight of compliance with the mandatory biodiesel blending requirement for diesel by requiring distributors to provide evidence that their inventories and purchases are consistent with the volumes of diesel B sold.

The main innovation of the draft resolution is that it allows the Agency to have daily access to electronic records of invoices related to transactions involving biodiesel, diesel A, and diesel B. By doing so, the ANP intends to continuously monitor market activity and more efficiently verify compliance with regulatory obligations. Currently, this monitoring is conducted primarily based on information reported monthly by market participants through the Product Movement Information System (“i-SIMP”), which limits the immediate adoption of enforcement and control measures.

The proposal is based on the amendments introduced by Law No. 15,082/2024 and Decree No. 12,437/2025, which strengthened the obligations related to the mandatory blending of biodiesel. If approved, the new system will cover biodiesel suppliers, diesel A suppliers, diesel B distributors, and all sales operations involving these products, thereby expanding the Agency’s capacity to inspect and monitor the market.

Learn more: ANP to Hold Public Consultation and Hearing on Monitoring the Mandatory Blending of Biodiesel

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