Power Generation, Transmission and Distribution 2025

BRAZIL Law and Practice Contributed by: Débora Yanasse, Bruno Salzano, Luisa Tortolano Barreto and Julia Braga, Tauil & Chequer Advogados in association with Mayer Brown

New Distributed Generation Regulation The New Distributed Generation Regulation (ANEEL Normative Resolution No 1,059/2023) regulates the new rules established by the Dis- tributed Generation Law. It revoked ANEEL Nor- mative Resolution No 482/2012 (prior distributed generation regulation) and amended ANEEL Normative Resolution No 1,000/2021 (which establishes general conditions for power supply to consumers by utilities). Legal Framework for Offshore Power Generation The Legal Framework for Offshore Power Gen- eration (Decree No 10,946/2022) established the first framework for offshore power genera- tion. In January 2025, Law No 15,097 was pub- lished, establishing a legal framework for off- shore power generation, providing two regimes through which the areas will be assigned: (i) the permanent offer proceeding, which is initiated upon the request of the interested parties and granted by means of authorisation; and (ii) the planned offer proceeding, in which the federal government assigns offshore areas on which the interested parties can bid, granted by means of concession. In any case, the authorisation or concession for use of the offshore area will be followed by ANEEL’s authorisation to implement the power generation project. Bidding and Term Extension of Existing Power Transmission Concessions Bidding and Term Extension of Existing Pow- er Transmission Concessions (Decree No 11,314/2022) establishes a new bidding process as a general rule for expiring transmission con- cessions agreements. The extension of a trans- mission concession’s term may occur exception- ally and at the sole discretion of the MME when the bidding process is deemed (i) unfeasible; or (ii) detrimental to the public interest. From 2025

and, more intensely, between 2030 and 2042, 170 transmission concessions will reach their respective contractual terms, according to data made available by the MME. IPP Authorisation Issuance Procedures for Power Plants IPP Authorisation Issuance Procedures for Power Plants (ANEEL Normative Resolution No 1,071/2023) establishes a different mechanism for obtaining Independent Power Producer (IPP) Authorisation for wind, solar, thermal, hybrid and other alternative source power plants. The main innovations are: (i) that it is no longer neces- sary to provide a performance bond in order to obtain IPP Authorisation for wind power plants (as required under the previous regulation); and (ii) the execution of grid connection agreements has become a requirement for obtaining IPP Authorisation. IPP Authorisation Issuance Procedures for Hydropower Plants up to 50 MW IPP Authorisation Issuance Procedures for Hydropower Plants up to 50 MW (ANEEL Nor- mative Resolution No 1,070/2023) modifies ANEEL Normative Resolution No 875/2020 to establish that the criterion for classification as a PCH is exclusively having an installed capacity greater than 5 MW but less than or equal to 30 MW (under the previous regulation, a maximum reservoir area of 13 km² was also required, but Grid Connection Procedures (ANEEL Normative Resolution No 1,069/2023) modifies the rules for access to the transmission grid to require developers to provide a financial guarantee equal to three months of connection fees when requesting an access opinion from the ONS. Once the access opinion has been issued, the this is no longer applicable). Grid Connection Procedures

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