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
