BRAZIL Law and Practice Contributed by: Débora Yanasse, Bruno Salzano and Luisa Tortolano Barreto, Tauil & Chequer Advogados in association with Mayer Brown
Law No 14,120/2021 Extension of the deadline for the implementation of projects affected by Law No 14,120/2021 (Pro- visional Measure No 1,212/2024) establishes that certain renewable energy projects that are subject to discounts on connection fees and that were sub- ject to a 48-month deadline for commercial opera- tion may request a 36-month extension (totalling an 84-month deadline), provided that such request com- plies with the requirements of Provisional Measure No 1,212/2024, including the submission of a perfor- mance bond. Provisional Measure No 1,212/2024 also provided for the anticipation of debts from the priva- tisation of Eletrobras in order to reduce the energy bills of final customers. Although Provisional Measure No 1,212/2024 expired on 7 August 2024, ANEEL still granted a 36-month extension to 601 projects that satisfied the legal requirements in time. Conditions for the Extension of Certain Power Distribution Concessions Decree No 12,068/2024 regulated the distribution concession renewal for concessions granted based on Law No 9,074/1995, which were not subject to prior renewal. Eligible concessions may be renewed once for up to 30 years, subject to the granting authority’s discretion and the concessionaire’s acceptance of revised contractual conditions. Renewal depends on the concessionaire’s performance during the preceding five years – it must have complied with continuity-of-supply standards (measured by the frequency and duration of outages) for at least three consecutive years and must not have breached its economic-financial sustainability obliga- tions for more than two consecutive years (the latter will be assessed only from 2021 onward). If either require- ment is not met, the concession may still be renewed provided the concessionaire injects the capital speci- fied in the amendment within 90 days of execution. The amendment will be null in case of default. The concessionaire must file its renewal request and supporting documentation with ANEEL at least 36 months before the concession expires. ANEEL must forward its recommendation to the MME no later than 21 months before expiration, and the MME must pub- lish its decision at least 18 months before that date. If
renewal is approved, the amendment must be signed within 90 days. The decree also allows a concessionaire to request that renewal effects be anticipated, provided the request was filed within 30 days after ANEEL released the draft amendment in February 2025. Throughout 2025, ANEEL reviewed and recommended the renew- al of 17 distribution concessions, having approved all requests submitted for analysis during that period. The first two renewals, EDP Espírito Santo and Neo- energia Pernambuco, were signed in 2025. On 6 April 2026, the MME published a decision approving the renewal of 14 additional distribution concessions, covering companies from CPFL, Equa- torial, Neoenergia, Energisa, EDP and Light Groups, and convened the concessionaires to sign the con- tractual amendments within 60 days. The renewals were officially signed on 8 May 2026, with the gov- ernment announcing approximately BRL130 billion in expected investments in the distribution segment through 2030, covering 13 states and approximately 41.8 million consumer units. The renewed concession agreements introduce strict- er requirements compared to the previous contractual framework, including consumer satisfaction indica- tors, mandatory targets for service restoration follow- ing extreme weather events, strengthening of the rural network service, annual investment plans subject to ANEEL oversight, and enhanced criteria for the open- ing of forfeiture ( caducidade ) proceedings in cases of persistent non-compliance with continuity-of-supply or economic-financial sustainability indicators. Three concessions held by the Enel Group (in São Paulo, Rio de Janeiro and Ceará) were not included in the April 2026 renewal package. Although ANEEL rec- ommended the renewal of the Enel Rio and Enel Ceará concessions in August 2025 and March 2026, respec- tively, the MME has not yet made a final decision on those recommendations. In the case of Enel São Paulo, ANEEL initiated a forfeiture proceeding follow- ing repeated service failures and major outages, and has not yet recommended renewal. As of the date of publication of this guide, the Enel São Paulo forfeiture process remains under analysis by ANEEL’s board of
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