Senate approves bill to lower tariffs for small producers – Legislation – Tecnoblog

On Wednesday night (15), the Federal Senate approved the Legal Framework for Microgeneration and Minigeneration of electric energy. The proposal guarantees benefits for another 25 years to electricity consumers who use renewable sources, such as photovoltaic panels, wind farms, hydroelectric or biomass plants, to supply electricity to distributors. The text provides that this distribution is free and, when the electricity consumed exceeds that injected, the customer will receive credits to deduct the value of the electricity bill.

Solar Power Panel (Image: Jack Haskell/Flickr)
Solar Power Panel (Image: Jack Haskell/Flickr)

Bill 5,829/2019 originated in the Chamber of Deputies and was approved under the rapporteurship of Deputy Lafayette de Andrada (Republicanos-MG). The PL went to the Senate, with senator Marcos Rogério (DEM-GO) as rapporteur. Changes were incorporated into the proposal, making it go back to the Chamber to be approved again. If that happens, it goes to President Jair Bolsonaro for sanction.

The text approved by the Senate defines micro generators of electric energy as those that generate up to 75 kW from renewable sources, using farms, terrain roofs or condominiums. Mini-generators emit between 75 kW and 100 kW.

Solar Power Producers Have Benefits Beyond 2045

The Legal Framework for Microgeneration and Minigeneration provides that the benefits granted to these small-scale producers, granted by Aneel (National Electric Energy Agency), will last beyond 2045.

When inserted in the Electric Energy Compensation System, used for energy distribution, the micro-generator or mini-generator can generate electricity for a distributor, which transfers it to a larger network of consumers. If this small producer’s consumption is greater than the energy emitted, it earns a credit that can be used by the transmission company to reduce consumers’ electricity bills.

The PL also ensures that this renewable energy generation for the distributor, which is free, is maintained for another 25 years. The text stipulates that small-scale renewable energy issuers must pay, by 2045, only a tariff on the difference — if positive — between the amount consumed and that supplied to the transmission company.

This rule will only be valid for producers who request permission from distributors to act as suppliers, through SECS, within 12 months after approval of the legal framework. To take advantage of the benefits of energy injection, micro and mini generators will have one to three months to place an order with the owner of the network.

Check the tariff exemption table on solar energy

The proposal also defines a transition period of seven to nine years on the staggered payment of the Distribution System Usage Tariff (TUSD wire B) 12 months after approval of the law. The fee to be paid by small producers is linked to the distribution assets and the operating cost of the service, which applies to equipment and maintenance.

TUSD wire B will follow an upward trend for micro and mini renewable electricity generators until 2031. As producers pay more, the coverage fee for the Energy Development Account (CDE), a fund to stimulate energy emissions renewable, dropped proportionally:

Year paid for the unit Paid by CDE
2022 0% 10%
2023 10% 90%
2024 10% 90%
2025 30% 70%
2026 30% 70%
2027 50% 50%
2028 50% 50%
2029 70% 30%
2030 70% 30%
2031 90% 10%
2032 90% 10%
2033 100% 0%

According to Marcos Rogério, there are 738,000 units of micro and mini generators that distribute renewable energy to larger companies. They are present in 5,300 Brazilian municipalities and, in all, generate 7,000 kW. The rapporteur stated:

There is no doubt that micro and mini distributed generation can make enormous contributions to the better functioning of the electricity sector and can reduce the cost of energy for the whole society, both in the long and short term. But it is important that the expansion of this form of generation takes place in a sustainable and, above all, socially fair way. And this bill goes exactly in that direction. – Marcos Rogério

After approval of the law, Aneel and the National Energy Policy Council (CNPE) will have 18 months to establish the new tariff rules for small suppliers of renewable electricity. The agency’s guidelines should be followed from 2029, but will come into effect two years later. There are specific benefits for rural renewable electricity cooperatives.

Despite the benefits to the market for micro and mini energy generators, the PL establishes a minimum tariff for all renewable energy emitters. Even if he consumes a little of this energy in a given month, a minimum fee will apply to this consumption.

Renewable Energy Association Celebrates PL

Solar energy panel on the roof of a house
Solar energy panel on the roof of a house (Image: Vivint Solar/Unsplash)

For the executive president of the Brazilian Association of Photovoltaic Solar Energy (ABSOLAR), Rodrigo Sauaia, the approval of the bill in the Senate undoes the legal uncertainty that existed in the solar energy market, which could result in growth in the sector in Brazil.

Sauaia commented in a statement that renewable energy is capable of generating more jobs and is essential for the country’s economic recovery, and added:

The own generation of solar energy is currently one of the best alternatives to avoid tariff flags and, thus, alleviate the pockets of citizens and entrepreneurs in this period of water shortage.

According to data from the association, solar energy is predominant in this model, and already represents a power of 7.5 GW in Brazil, which is equivalent to more than half of the energy generated by the Itaipú Power Plant.

For companies, the bill approved by the Senate establishes that distributors can consider the electricity injected by micro and mini generators as involuntary overcontracting. This can mean a reduction in the energy tariff to consumers.

Transmitters will also be able to buy surplus energy from these small producers, which can benefit the company in times of energy shortage. This rule will still be defined by Aneel, but the percentage acquired by distributors will be accounted for as an investment in the renewable energy sector — a requirement of the legal framework.

With information: Senate Agency

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