BRAZIL Law and Practice Contributed by: Débora Yanasse, Bruno Salzano and Luisa Tortolano Barreto, Tauil & Chequer Advogados in association with Mayer Brown
directors, and no final decision has been published by the MME on any of the three Enel concessions. 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 Petroleum Law (Law No 9,478/1997) to provide that 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-Carbon Hydrogen Development Programme ( Programa de Desenvolvimento de Hidrogênio de Baixo Carbono Brasil or PHBC), which aims to provide financial sub- sidies through the concession of tax credits to low- carbon hydrogen projects qualified in the programme. Energy Sector Reform As further detailed in 1.1 Law Governing the Struc- ture and Ownership of the Power Industry , Law No 15,269/2025 was published in November 2026, with the aim of reforming the power industry model towards free-market expansion, changes in tariff structures, and rebalance of sectoral charges among customers, The Brazilian Federal Government, through Decree No 12,772 of 5 December 2025 established the National Policy for Access to the Transmission System ( Política Nacional de Acesso ao Sistema de Transmissão or PNAST), with the aim of modernising the procedures that regulate how generators and customers perma- nently connect to the SIN. The new policy provides for access through “Access Seasons”, which are periodic among other relevant changes. Grid Connection Procedures
seasons during which parties interested in accessing the transmission system can formally register their access requests. These requests will be jointly and concordantly reviewed by the ONS. The new framework will operate through competitive processes, which will be carried out only when access requests exceed the remaining capacity available at the intended connection point. Under the competitive processes, the connection capacity will be awarded to the bidders with the highest premium offers. Rev- enues generated from such competitive processes will be allocated to tariff affordability, in accordance with guidelines issued by the MME and regulations to be established by ANEEL. Competitive processes may also be conducted for the contracting of future capac- ity, pursuant to MME guidelines. MME Normative Ordinance No 129, dated 24 April 2026, sets forth the guidelines for the Access Seasons provided for in the decree. The first Access Season is scheduled to occur by 8 October 2026. 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 Industry Model (Bills of Law No 1,917/2015 and No 414/2021) several improvements have been made to the power industry model as per discussions in MME Public Consulta- tions No 32 and 33/2017. They provide for free market expansion, unbundling of the contracting of capacity and power, and a self-production regime, among other things. As further detailed in 1.1 Law Governing the Structure and Ownership of the Power Industry , Law No 15,269/2025 (resulting from the conversion of Pro- visional Measure No 1,304/2025) implemented most of the structural changes originally contemplated by those bills of law, including the expansion of the free market to all consumers, the introduction of the supplier of last resort, the revision of self-production rules, the reform of sector charges and the new attributions to the CCEE. 1.8 Unique Aspects of the Power Industry Brazil has one of the cleanest electric matrices in the world, as 84.84% of its power generation capacity
61 CHAMBERS.COM
Powered by FlippingBook