The approved rate of solar power generation in Brazil

The Chamber agreed to charge fees for self-generation of solar energy

In October, the Chamber of Deputies of Brasilia approved a bill stating that the same generation Solar energyStart paying a fee to use power distribution wires.

A measure that goes against what the energy distributors want by the government. After it was approved by 476 votes to 3, Now, the diploma will go to the Brazilian Senate.

solar power generation fee

The bill, which was addressed, was the target of significant pressure from small generators for renewable energy sources, especially solar energy, as well as energy distributors. It required charging for the use of the power distribution system, consistent with the cost of the service provided by the companies themselves.

A controversy affecting both small and micro power generators, those who consume the renewable energies they produce (whether from businesses or consumers in homes).

This type of energy is the most accessible for this type of electricity generation, consuming about 700,000 solar units (98% of the world’s distributed generation, according to data from ABSolar).

With this bill, even to generate a portion of the energy they consume, the consumer would have to get a contract with an energy distributor, according to attorney Marina Idar.

“In distributed generation, a person is able to dump the surplus of what he produces onto the grid. He generates what he consumes and can generate surplus,” he explained, but on the other hand the energy is intermittent, because the sky will not always be clear (cloudy or rainy) and at night there is no way for energy production.

Distributors operate with a compensation system, which at the end of the month settles what the consumer produces and what energy he consumes. Thus, it pays or receives from the company the difference between what is injected into the network and what you are using.

But the fees, such as the use of the distribution system, were outside the sector fees paid by consumers (this is the amount paid for the energy to be transmitted by the copper wire).

I 2012 A snake (National Electric Energy Agency) The organization of the distributed micro and micro-generation activity began, after setting 2019 as the year of the review, but since then, the legislation has not been discussed again, as a result of pressure from several quarters.

One of the most discussed points was that the subsidy was intended for consumers who did not need this financial relief (higher income). “Whoever pays for the maintenance of the yarn is the captive consumer.” [os que usam a energia de distribuidora], not the one that generates the power and also uses the wire. Aidar explained that a microcooler uses wire because it needs it, but it burdens the poorest.

Deputy Lafayette de Andrada (Republic- MG) noted that since 2012, both micro- and small-scale distributed generation have been responsible for creating more than 140,000 jobs, collecting about 5.9 billion reais in taxes.

It is estimated that for this year, 2021, there is an estimated investment of about 16.7 billion riyals, and by 2032 distributed generation will achieve 13.8 billion riyals for energy consumers.

Existing projects or projects filed for up to 12 months after publication of the law, a vested right to existing benefits is guaranteed until 2045, which allows amortization of investments made.

For new projects, there will be a transition period, during which consumers participating in the compensation scheme will pay only the tariff for the use of the distribution network wire on the part of the excess electricity that has been compensated.

In the new text, there is a transition to change the system of tariff collection, where in 2023 the consumer will pay 15% and 85% will be paid by the CDE (Energy Development Account), in 2024, 30% will be paid by the consumer and 70% by the CDE.

The micro-generator is expected to pay 100% of the Fio B distribution system usage fee from 2029, but ANEEL will still set the rule for the next 18 months.

Some say that there is a strong lobby of distributors against the model, Andre Bueno is one of the advocates of this idea … “This created great chaos between distributors, associations and the distributed generation side. The project brings very positive aspects, such as the vested right to benefits until 2045 for stations that are already operating, which calms down one of the most controversial points.”

“Between 2023 and 2028, new DG plants will be subject to a transition rule and will gradually pay TUSD B, the sector fee intended to reward distributors”

Thus, to determine the counts, the snake and CNPE (National Energy Policy Council) will take into account the benefits and costs that distributed generation adds to the electricity system and to consumers.

The project will include the Social Renewable Energy Program, which aims to invest in photovoltaic and other renewable energy systems, locally or remotely, for low-income consumers.

The funds needed will come from the energy efficiency program, from supplementary funding sources or from portions of other revenue from activities undertaken by distributors, and transferred to tariff reductions.

The electricity distributor must submit a business plan to the Ministry of Mines and Energy with the following contents:

• multi-year investment
• System installation goals
• Justifications for categorizing beneficiaries
• Reducing the annual subsidy for the social electricity tariff for program participants

It will also have a duty to promote public tenders for accreditation of specialized companies and then competitive bidding for the contracting of services to implement installations of PV systems, locally or remotely, or from other renewable sources.

According to Representative Rodrigo Agostino, the approval of the text was reasonable. “The whole world is promoting solar energy. Here in Brazil, distributors are stymiing this growth in every way. They have set an 18-month deadline for Aneel to solve the tax problem. That is, there is still a huge risk. But overall, this is a positive” , but remains concerned about uncertainties about the rules beyond 2029.

Marcelo Ramos, Vice President of the Chamber, welcomed the changes to the text. “While many have attacked me about this from GD [geração distribuída]Calm and stubbornness followed an agreement that would make GD viable without affecting the captive consumer. This thesis prevailed. Everyone won.”