The law establishing the legal framework for distributed generation was sanctioned. In two years, the growth in the type of generation was 316%.
On 01/07, Bill No. 5,829/2019 was enacted, establishing the Legal Framework for Distributed Generation. The Distributed Generation (DG) was standardized for the first time in Brazil in 2012 by ANEEL. In this model, Brazilian consumers can generate their own electricity from renewable sources or qualified cogeneration. You can even supply the surplus to your local distribution network.
Ten years later, the resolution became law 14.300/2022, which establishes the legal framework for microgeneration and distributed mini-generation, the Electric Energy Compensation System (SCEE) and the Social Renewable Energy Program (PERS).
The changes of the new legal framework for distributed generation
Despite having grown and gained relevance in the electricity sector, distributed generation still did not have its own law. The creation of legislation is important to bring legal certainty to agents working in the segment, allowing the sector to grow in a healthy way.
The 2019 Bill was debated in the National Congress with the participation of society – associations, consumers, bodies and entities in the sector – with the aim of creating a proposal that would reconcile the interests of those involved, bringing benefits to all.
The law also creates the Social Renewable Energy Program (PERS), to finance the installation of photovoltaic generation and other renewable sources for low-income consumers. The resources must come from the Energy Efficiency Program (PEE).
New tariff regime and transition rules
According to data from ANEEL, maintaining the rules in force by Normative Resolution 482, the DG would imply subsidies that would result in the transfer of R$ 55 billion in costs to other consumers in 15 years. Therefore, one of the main changes was the creation of a new tariff model.
The law came into force in January 2022, but the legislation provides for a transition period for projects requested within 12 months from the publication of the law. Thus, all projects in DG, installed or whose request occurs until January 7, 2023, will be valid with the current compensation rules provided for in Normative Resolution No. 482/2012 until December 31, 2045.
For those who join after the transition period, there will be a six-year staggering of costs associated with the tariff components related to the remuneration of assets and distribution services and the cost of operation and maintenance of the distribution service.
The percentage increases gradually:
- 15% from 2023;
- 30% from 2024;
- 45% from 2025;
- 60% from 2026;
- 75% from 2027;
- 90% from 2028.
In the case of distributed mini-generation units above 500 kW in the form of remote self-consumption or shared generation, there will be an incidence, until 2028, of 100% of the distribution cost; 40% of the transmission cost; 100% of Research and Development and Energy Efficiency charges and Electric Energy Services Inspection fee. As of 2029, these units will also be subject to the tariff rules established by Aneel.
Installed power reduction
After December 31, 2045, the law provides for a reduction in the maximum installed power limit for existing minigeneration units in the case of non-dispatchable sources from 5 MW to 3 MW. In the case of new units, the law provides for a maximum installed power limit for dispatchable sources, such as hydroelectric plants, qualified cogeneration, biomass and biogas of 5 MW and 3 MW for non-dispatchable sources.
Guarantee of Faithful Compliance
The law provides that those interested in implementing distributed minigeneration projects with a power greater than 500 kW must present a guarantee of faithful compliance. There will be 2.5% of the investment for plants with an installed capacity greater than 500 kW and less than 1,000 kW and 5% of the investment for plants with an installed capacity greater than or equal to 1,000 kW. The guarantee must be valid for up to 30 days after the project is connected to the distribution system.
Both ANEEL, electric energy concessionaires and permissionaires must adapt their regulations, standards and procedures within 180 days of the publication date. Thus, with the law enacted, the DG sector expects an increase in 2022 in the demand for investments in microgeneration and distributed minigeneration generating units, mainly due to the need to carry out the access request within 12 months for the units to benefit from the rules previous tariffs that will be in effect until 2045.
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