BRAZIL Law and Practice Contributed by: Débora Yanasse, Bruno Salzano and Luisa Tortolano Barreto, Tauil & Chequer Advogados in association with Mayer Brown
generation projects, but recently the free market has been gaining relevance, as: • the free market offers lower energy prices; • requirements for migrating to the free market are being reduced; and • the BNDES and other lenders have been financing projects in the free market. Power generation companies have been building mixed portfolios of PPAs to develop greenfield power generation projects, both in the regulated and free markets. With the ongoing expansion of the free mar- ket in the past years, power generation companies have been increasingly relying on the free market, specifically through self-production structures and corporate PPAs, to develop greenfield projects. 2.2 Electricity Imports and Exports The importation or exportation of electricity is an activity subject to authorisation by the MME pursuant to MME Ordinance No 596/2011. Pursuant to Decree No 5,668/2006 and ANEEL Normative Resolution No 1,009/2022, electricity import and export transactions are subject to ANEEL’s approval through an importa- tion licence or the exportation registry with the For- eign Trade Integrated System ( Registro de Exportação no Sistema Integrado do Comércio Exterior or “SIS- COMEX”). MME Normative Ordinance No 60/2022 and MME Ordinance No 418/2019 regulate specific importation and exportation transactions to and from Argentina and Uruguay. 2.3 Supply Mix of Electricity According to information available on ANEEL’s web- site (reference date: May, 2026), the supply mix of electricity in Brazil comes from the following principal sources, with corresponding rounded percentages based on installed capacity:
• coal – 1.8%; and • nuclear – 0.91%. 2.4 Market Concentration Limits
Law No 12,529/2011, also known as the “Competition Law”, provided for an institutional reorganisation of the Brazilian System for the Defence of Competition. Under this law, the Administrative Council for Eco- nomic Defence ( Conselho Administrativo de Defesa Econômica or CADE), an independent agency report- ing to the Ministry of Justice, is the authority with jurisdiction over the national territory responsible for investigating and ultimately deciding on competition issues. Pursuant to the Competition Law, concentration acts (amalgamations, mergers, share or asset acquisi- tions, associations, consortiums, or joint ventures) must be submitted for CADE’s prior approval if one of the groups involved in the transaction has an annual gross revenue equal to or greater than BRL750 mil- lion and the other group involved in the transaction has an annual gross revenue equal to or greater than BRL75 million. The electricity market is divided, according to the case law of CADE, into four distinct relevant markets: • generation; • transmission; • distribution; and • trading. There are no concentration limits regarding percent- age of market share in these segments of the power industry. In general terms, CADE understands that there is “competition by the market” in the power transmission and distribution segments, where con- cessions are granted after a public bidding procedure with the participation of Brazilian and foreign bidders. 2.5 Surveillance to Detect Anti-Competitive Behaviour As mentioned in 2.4 Market Concentration Limits , CADE is the authority with jurisdiction over national territory responsible for investigating and ultimately deciding on competition issues. ANEEL supports CADE’s activities by analysing concentration acts
• hydro – 50.46%; • wind – 15.94%; • biomass – 8.2%; • natural gas – 8.9%; • solar – 10.23%; • oil – 3.56%;
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