The extension of contracts for domestically produced coal-fired power plants could generate an estimated additional cost of R$ 1 billion per year for energy consumers until 2040, according to calculations by ABRACE (Brazilian Association of Large Industrial Energy Consumers and Free Consumers). The renewal is included in Conversion Bill (PLV) No. 10/2025, resulting from Provisional Measure 1.304/2025.
In a letter sent to the Presidency of the Republic, the Civil House, and the Ministries of Finance, Mines and Energy, Environment, and Development, Industry and Commerce, the organization requested a presidential veto of this and other provisions of the bill.
Among the points criticized, ABRACE requests a veto on compensation for cuts in wind and solar power generation, estimating that the measure could cost consumers R$ 7 billion by the end of 2025.
The association also opposes the mandatory contracting of 3 GW in biomass-fired thermal plants and 3 GW in small hydroelectric plants (PCHs), which, according to its estimates, would add R$ 7,9 billion per year to the electricity bill.
Renewables expected to overtake coal as the main source of electricity by 2026
Another questioned passage deals with the new restrictions on self-generation of energy, which, according to the entity, "create a market reserve and stimulate the expansion of generation even in a scenario of oversupply."
A HUG It also challenges the use of CDE (Energy Development Account) funds to finance TV reception antennas, pointing out that the measure is "unrelated to the electricity sector" and exacerbates a burden that already exceeds R$ 50 billion annually.
Finally, the association requests a veto of the article that prioritizes the electrical interconnection between Porto Velho (RO) and Manaus (AM), because it "interferes with the technical planning of the transmission expansion."
“These measures represent setbacks, as they maintain practices that increase costs, challenge sector planning, create market reserves, and compromise the transition to a more efficient and cleaner energy matrix,” stated Paulo Pedrosa, president of ABRACE Energia, in a press release.
"The sector needs predictability and balance, not new distortions. Modernizing the electricity sector should reduce the burden of electricity bills on businesses and families," he added.
ABRACE brings together 60 business groups that represent more than 40% of the country's industrial energy consumption.
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