BRAZIL Law and Practice Contributed by: Débora Yanasse, Bruno Salzano, Luisa Tortolano Barreto and Julia Braga, Tauil & Chequer Advogados in association with Mayer Brown
Energy Sector Reform As further detailed in 1.1 Law Governing the Structure and Ownership of the Power Indus- try , Provisional Measure No 1,300/2025 was recently published to reform the power industry model towards free-market expansion, changes on tariff structures, and rebalance of sectoral charges among customers, among other rel- evant changes. Access of Customers to the Transmission Grid Resolution No 1,122/2025 revised regulatory aspects related to access to the transmission grid by final customers. In summary, the require- ments for access of customers have become similar to those applicable to power plants and, accordingly, customers are also required to pro- vide a financial guarantee equivalent to three months of connection fees upon request of the access opinion to the ONS. Once the access opinion is issued by the ONS, attesting to the feasibility of the connection, the customer has to replace the financial guarantee for another one in the amount equivalent to 36 months of con- nection fees until execution of the connection agreements. If the access opinion attests that the connection is not feasible, the customer has the option to either have its financial guarantee returned or to maintain it in place in anticipation of future capacity in the grid. 1.7 Announcements Regarding New Policies Some recent bills of law may materially affect the power industry. Modernisation of the Power Industry Model Through Modernisation of the Power Indus- try Model (Bills of Law No 1,917/2015 and No 414/2021) several improvements have been made to the power industry model as per discus-
The decree also allows a concessionaire to request that renewal effects be anticipated, pro- vided the request was filed within 30 days after ANEEL released the draft amendment in Febru- ary 2025. To date, ANEEL has recommended the renewal of five distribution concessions, and the MME will issue the final decisions. If renewal is denied, the concession will be offered in a new bidding process. Low-Carbon Hydrogen Legal Framework The Low-Carbon Hydrogen Legal Framework (Law No 14,948/2024) establishes mechanisms for the insertion of hydrogen into the national energy sector and parameters to encourage its use. It provides the definition of renewable and low-carbon hydrogen. It amends the Petro- leum Law (Law No 9,478/1997) to provide that the National Agency for Petroleum, Natural Gas and Biofuels ( Agência Nacional do Petróleo, Gás Natural e Biocombustíveis or ANP) is competent to regulate, authorise and supervise all activities in the hydrogen chain. The Legal Framework also sets a new Special Regime of Incentives for the Production of Low- Carbon Hydrogen (“Rehidro”) for the low-carbon hydrogen chain and renewable power, biogas and biomethane projects destined to produce low-carbon hydrogen. Following in the footsteps of Law No 14,948/2024, Law No 14,990/2024 established the Low-Car- bon Hydrogen Development Programme ( Pro- grama de Desenvolvimento de Hidrogênio de Baixo Carbono Brasil or PHBC), which aims to provide financial subsidies through the conces- sion of tax credits to low-carbon hydrogen pro- jects qualified in the programme.
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