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Electrical Sector

See here for the information and tidings latest about the electricity sector. The content is curated by our specialists, considering the importance of the topic for the market.
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AMBER ENERGY CASE (generation)

29/1/2025

The National Electric Energy Agency dismissed all administrative processes involving Ambar Energia thermal power plants contracted during the 2021 water crisis. The decision was approved by a majority this Tuesday, January 28, the same day that the company paid R$ 1.1 billion in fines imposed by ANEEL (R$124 million) and the Electric Energy Trading Chamber (R$ 978 million) for contractual breaches.

> Learn more in the news “Amber pays R$ 1.1 billion in fines and Aneel discharges PCS lawsuits”: https://bit.ly/3PXwjiB

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DEPUTY DIRECTOR (politics)

29/1/2025

This Tuesday (28/01), the board of directors of ANEEL concluded the vote on 17 of the 19 cases whose deliberation was suspended due to the absence of a fifth director. All cases received the vote of substitute director Ludimila Silva at her first board meeting, where she must remain for up to 180 days in the vacancy opened eight months ago with the departure of director Hélvio Guerra.

> Continue reading the news article “Aneel unlocks 17 suspended lawsuits with the vote of a substitute director”: https://bit.ly/4huPID8

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EXCERPTS FROM THE 143RD EDITION OF VOLTS BY CANALENERGIA — 21/01/2025

29/1/2025

Energy Transition Acceleration Program (Paten) and more

“(...), President Lula signed the long-awaited Energy Transition Acceleration Program (Paten). Nice, (...), but the original text of Law 15,103 was vetted. For example, sections that dealt with financing from the Climate Fund for mobility and logistics projects fell. The provision for incentives for batteries was also left out. There was no lack of contestation, of course. Lawyers heard by CanalEnergia defend the revision of presidential vetoes. From ANEEL's side, it was reported that the public consultation regarding the public notice for the auction of isolated systems, scheduled for next May, is in the square. Sandoval Feitosa, director general of the regulatory agency, also announced that the board is working hard to meet the deadline stipulated in the decree that deals with the guidelines for the renewal of distributors' concessions. The goal is to approve the term of amendment to the contracts in February.

Turning now to the social agenda, Rui Altieri, former CCEE, assumed the presidency of the Brazilian Association of Independent Electricity Producers (APINE), instead of Guilherme Velho. (...). And since January 17, the Brazilian Nuclear Energy Association (ABEN) has had a new board of directors, under the command of Carlos Henrique Silva Seixas. (...).

(...), at the moment the two associations, Absolar and Abeeólica, are still very disgusted with the regulatory agency's position. All because of the questions involving curtailment and constrained off. Wind and solar generators, as is known, have been brought to justice. They want to be reimbursed for revenue losses caused as a result of restrictions to which they have been subject, as determined by the ONS. Aneel, for a number of reasons, understands that this type of refund is not eligible. In fact, the most recent decision of the Supreme Court of Justice (STJ) on this dispute proved ANEEL right until the merits of the case were judged. In other words, it suspended the effects of an injunction intended to guarantee full compensation for the cuts. It turns out that, in the view of the regulatory body, it is necessary to study the problem better and, if appropriate, to review the rules in force to define more clearly what, in fact, is a business risk and what is subject to compensation. The generators have already warned that they do not intend to retreat from this legal battle. Representatives of Abeeólica and Absolar attribute responsibility for these costs to the electrical system. They question the tariff impact on the consumer, used as an argument by the agency.”

Consumption and behavior

“Once again, who would have guessed, electricity tariffs helped to contain inflation a little bit. The National Consumer Price Index 15 (IPCA-15) for January closed at 0.11% - 0.23 percentage points lower than the rate registered in December (0.34%). In the calculation, the item Housing decreased 3.42%, thanks to the credit of the Itaipu Bonus on the invoices issued in the current month. In Roraima, the joy is twofold. The electricity bill there, effective since last Saturday, the 25th, had an average cut of 3.70% approved by ANEEL. As highlighted in the previous edition of Volts, the agency's director general, Sandoval Feitora, confirmed, in an interview with journalists, that there is a favorable prospect of maintaining the green flag in the coming months. But if the idea is to try to get rid of part of the expense of electricity consumption, know that Tempo Ok has just made available to the market a free portal that allows evaluating solar potential, for those who plan to install photovoltaic panels.”

ONS — Transmission Functions

“Well... despite the discontent of wind and solar generators, the ONS released positive data regarding the 2020-2024 moving average for the Transmission Functions. The result was, on average, 99.05% in availability, with an unavailability rate of 0.95%. This data will be used to compose the amounts of System Service Charges (ESS) for mills in both segments. And since we're talking about transmission, the Energy Research Company (EPE) and the Brazilian Institute for the Environment and Renewable Natural Resources (Ibama) signed a Technical Cooperation Agreement. The objective is to establish a new paradigm for line planning. Great news, because the more closely EPE and Ibama are involved, the lower the chance of a license going bad in practice. Another cool news is that biomass-powered electricity generation should add 793 MW to the electricity grid in 2025, predicts the Sugarcane and Bioenergy Industry Union (Unica).”

Roraima/Venezuela connection

(...) “In the last edition of Volts, we mentioned that there was hope that this connection with the neighboring country would be reactivated soon. However, the previous tests carried out by the ONS to assess the line's conditions were not conclusive. According to the Operator, additional information will be necessary to complete this diagnosis. Another news that made the market aware was Aneel's decision to deny an order from Brazil Fortescue Sustainable Industries. The company requested the immediate suspension of all reviews of access opinions requested by ultra-electrointensive consumers with green hydrogen/ammonia production projects. The precautionary measure requested by the company focused on the ongoing processes at the ONS, filed as of August 2024. Fortescue claimed that the current rules are not appropriate to the new profile of electrointensive consumers. Let's keep an eye out because there are already companies threatening to give up investing in hydrogen production in Brazil, a valuable potential consumer of enormous volumes of renewable generation.”

Resilience to every test

“(...). Despite the difficulties, the expansion of photovoltaic installations in Brazil, on a small, medium and large scale, continues to advance. Among the main challenges, as we know, is curtailment. According to a projection from Thymos Energia, however, there will be an expansion of 10 GW in the Brazilian renewable matrix in 2025. This volume includes centralized and distributed generation (GD) projects, demonstrating the versatility and adaptability of the domestic market. In 2024, GD closed at over 35 GW, reaching 14% of total installed capacity. Another impactful fact is that last year Brazil reached a significant solar milestone, with a 76% increase in the number of mergers and acquisitions compared to the previous year, according to data from Greener. The diversity of investor profiles, including generation companies, investment funds, and energy managers, reflects the expansion of opportunities in the solar market. Around 69% of the investment companies had national capital in 2024, evidencing the role of Brazilian companies in the sector. If on the one hand there are issues to be resolved on the other, turn and move, an incentive emerges. Companhia Ambiental do Estado de São Paulo (Cetesb) announced, for example, the exemption from environmental licensing for the implementation of photovoltaic projects of up to 5 MW. This possibility is suitable for those who already have the license and want to expand.”

LRCAP on track to lead the spotlight

It took a while to arrive, but the Power Reserve Capacity Auction, scheduled for June, mobilizes the sector, warming agents' hearts and minds. Several companies are preparing for the event. Strategies range from hydroelectric power plant expansions to the use of biofuels. This happens as changes and updates to the rules arrive, both from the Ministry of Mines and Energy (MME) and from ANEEL. In a more recent announcement, Pasta updated the calculation of fuel prices for contracts. The regulatory agency, in turn, approved the expansion (+163 MW) of the installed capacity of the Três Marias hydroelectric plant, owned by Cemig GT, located on the São Francisco River. Light wasted no time and obtained the Executive Summary Appropriateness Registration Order (DRS-EVTE) regarding the expansion of the Fontes Nova hydroelectric plant. The idea is to increase the current capacity from 132 MW to 292 MW. Without revealing which project he may participate with, the CEO of EDF Brazil, Pierre Bernard, in an exclusive interview with CanalEnergia, assures that the company is also prepared for this dispute. The indication is that the LRCAP has many favorable points to have a successful result.”

Source: 143rd EDITION, OF VOLTS BY CANALENERGIA — 21/01/2025

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Today's News Summary

28/1/2025

January 28, 2025, Tuesday

- UNAVAILABILITY AT THE XINGU-TERMINAL RIO BIPOLE (operation)

Due to the unavailability at the Bipolo Xingu-Terminal Rio on January 22, the National System Operator has been taking measures to ensure that demand is met. According to the ONS, there were two cases of equipment shutdown, both without a load cut. At 22:31 p.m., the 2,518 km Elo 800 k V Bipolo Xingu/Rio Terminal, located between the states of Pará and Rio de Janeiro, was automatically blocked. Tower falls were identified and at the time of the shutdown, there was a storm. The ONS is currently operating with 4,000 MW on the other available bipole, which also connects the Xingu Substation, in the North, to the Estreito Substation, in the Southeast.

> Learn more in the subject “Unavailability in a bipole reduces flow capacity in Belo Monte”: https://bit.ly/40N6Y10

- MAUÁ 3 AND APARECIDA (businesses and companies)

The National Electric Energy Agency transferred ownership of the authorizations for the Mauá 3 and Aparecida gas thermoelectric plants from Eletrobras to J&F Investimentos S.A. The order issued by the Superintendency of Concessions, Permits and Authorizations for Electric Energy Services was published this Monday, January 27, almost eight months after the sale of the Eletrobras thermal park to Ambar Energia, by the group of brothers Wesley and Joesley Batista.

> Read more in the article “Aneel transfers authorizations from Mauá 3 and Aparecida to J&F”: https://bit.ly/3EnX39b

- HYDROGEN ECONOMY (expansion)

The GlobalData 'Hydrogen' report reveals that the hydrogen economy is currently in its critical phase of development, as the increase in demand that was expected in 2020, due to bold plans to decarbonize the industry, is not taking place. As more industries, such as steel, transportation, and energy, attempt to decarbonize their operations, demand for low-carbon hydrogen should grow.

> Continue reading the article “Hydrogen is in a critical phase of development, says GlobalData”: https://bit.ly/4jwtpyN

- ENERGY CHANNEL (events)

COMMUNITY MEETUP

“Tax reform in the Electric Sector - What now?”

30 January/2025

Online

SECTORIAL AGENDA

13 March/2025

Hotel Windsor Barra - RJ

https://www.agendasetorial.com.br/pt/home.html

WORKSHOP FOR

12 March/2025

Hotel Windsor Barra - RJ

https://workshoppsr.ctee.com.br/pt/home.html

- OTHER NEWS FROM TODAY

Brazil reinforces global leadership in clean energy, says Alckmin: https://bit.ly/3CDZ9RQ

“According to the vice president, clean energy is seen as an essential path for the future.”

Eletrobras announces AGE for February 6: https://bit.ly/4hy4t8f

“The agenda includes retail sales in the Bylaws and the composition of the CA. Company announced the delisting of Latibex”.

Cogecom grows 600% in the shared energy market in two years: https://bit.ly/4humHrh

“Cooperativa reached the mark of 2,000 generator units aimed at small consumers”.

Source: Canal Energia

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FRAGMENTS EXTRACTED FROM ELECTRA CLIPPING — ISSUE 02/25, 24/01/2025

27/1/2025

- “Electra Group negotiates acquisition of Enliv to explore low voltage energy market

The Electra Group signed a share purchase and sale agreement with the founding shareholders of Enliv Energia, Fábio Murilo Costa Machado, CEO of the startup, and Grupo ON, from Curitiba. Initially, Electra will make a direct investment in Enliv, acquiring an 80% stake, to invest in technology and marketing. In the second phase, which will take place after a period of five years, Electra will acquire the remaining 20% interest from the founding shareholders, becoming the sole shareholder.

- Rains should bring relief to energy consumers

The abundant rains that have hit much of the country since December are allowing the recovery of the storage levels of the hydroelectric reservoirs, after the drought that occurred in 2024. “This above average rainfall was fundamental to reverse the drop in hydraulic storage levels across the country. Over those months, there was a recovery of almost ten percentage points in storage, and we started 2025 with the third highest level in the last five years,” said Franklin Miguel, president of the sales company Electra Energy.

- Instant demand reaches 102.8 GW and breaks a new record in the SIN

Instant demand in the National Interconnected System (SIN) reached 102,810 MW on Wednesday (22) due to strong heat. The value is the highest ever recorded in the SIN, surpassing the previous record of 102,478 MW, as of March 15, 2024. The average daily load also continued to break a record, reaching an average of 92,985 MW on the same day.

- CP discusses Marketing Rules for MRE power plants not supervised by ONS

The National Electric Energy Agency (ANEEL) will discuss in public consultation the Marketing Rules and Procedures applicable to hydroelectric projects not centrally dispatched by the National System Operator (ONS), within the scope of the Energy Relocation Mechanism. The participation of these mills in the MRE was regulated last year.

- Brazil has a new record for solar generation in the National Interconnected System, says ONS

Brazil reached a new record for solar energy generation in the National Interconnected System (SIN), reaching an average of 12,676 megawatts of daily production. This figure represents an increase of 5.3% compared to the previous record, registered in October 2024. The National Electric System Operator (ONS) highlighted that this growth reflects the continuous expansion of installed solar energy capacity in the country. Solar energy has established itself as a significant source in the Brazilian energy matrix, contributing to the diversification of energy sources and the reduction of greenhouse gas emissions. The trend is that the share of solar energy will continue to grow in the coming years, driven by investments in new technologies and the greater competitiveness of the sector.

- Aneel overturns injunction in the Supreme Court against cutting wind and solar generation

Aneel was able to overturn, in the Superior Court of Justice (STJ), the injunction against orders to cut generation by wind and solar power plants. The lawsuit was filed by mill owners in both segments, who claim the loss of revenue and demand compensation in the order of R$ 1 billion. The orders to cut power generation have triggered a new wave of judicialization in the electricity sector and discourage investments in renewable sources.

- Green flag will continue throughout 2025 if the rain scenario remains favorable, says Aneel

The director general of ANEEL, Sandoval Feitosa, stated that the tariff flag system may continue to indicate the color green on consumers' electricity bills throughout 2025 if the rainy scenario for the electricity sector remains favorable. Feitosa stressed that the rainy season began “very intensely”, with rains at the headwaters of the rivers that supply the country's main hydroelectric reservoirs.

- 2025 auctions enable hydroelectric expansion, but sector sees room for more opportunities

The publication of the Capacity Reserve Auction (LRCAP) guidelines, to be held in July, brought relief to power generators. However, for large hydroelectric dams, the segment's participation in the event could be greater, while small power plants (PCH) are trying more space in the market with an exclusive auction. According to the Brazilian Association of Electric Power Generating Companies (Abrage), it is possible to increase the power of hydroelectric dams by up to 18.4 GW, with the motorization of empty wells, expansion and installation of new turbines.

- Distributed generation grows 33.1% in 2024, with an addition of 8.8 GW

Brazil expanded distributed migro and mini-generation (MMGD) power by 8,808 MW in 2024, an increase of 33.1% compared to the installed capacity at the end of the previous year. The solar source with panels installed on the roofs of homes continues to dominate the installed capacity, with 779 thousand connections across the country in the year. As a result, the total installed capacity of MMGD reached 35.4 GW, according to data from ANEEL. Among the new installations, practically all of them are photovoltaic energy.

- Conventional and encouraged energy prices decline in the short term

The very short-term prices for conventional and encouraged energy in the Southeast subsystem closed the first two weeks of the year with a negative variation compared to the immediately preceding week of 13.40% and 9.98%, respectively. The data correspond to the contracts for January closed between January 3 and 10 and were released by BBCE.

- The free energy market tends to see greater competition in 2025, but discounts should maintain current levels.

The discounts offered in the free market compared to the regulated one should stabilize in 2025. According to experts, the pace of migrations from last year may be slowed down by the large volume of exits from the captive environment that has already taken place. Competition between marketers, on the other hand, must intensify, while mergers and acquisitions may consolidate larger players. The expectation is that the discounts will remain between 25% and 30%.

- Delinquency in the MCP falls to R$ 38 million in November

The liquidation of short-term market operations (MCP) in November 2024 was in default of R$ 38 million, against R$ 177.8 million the previous month, according to the Electric Energy Trading Chamber (CCEE). The liquidation totaled R$ 1.32 billion of the total of R$ 2.64 billion recorded. Of the unpaid amount, R$ 1.10 billion is related to hydrological risk thresholds.”

Source: ELECTRA CLIPPING — ISSUE 02/25, FROM 24/01/2025

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