With the collaboration of Ericka Araújo
This Tuesday (28), Senator Eduardo Braga (MDB-AM) presented to the National Congress the final report of MP (Provisional Measure) 1.304/2025, which proposes changes to several laws related to the electricity sector, the natural gas market and GD (distributed generation) in Brazil.
The text was read by the rapporteur during a meeting of the Joint Committee responsible for analyzing the Provisional Measure and reignited the debate on how to balance the modernization of the electricity sector with the maintenance of incentives for renewable sources.
It is worth noting that the text presented by the senator is preliminary and will still be discussed in the Plenary before being considered by parliamentarians.
In an interview with Canal Solar, representatives of the solar energy market stated that the document presents specific advances, but also brings risks of regression, especially with regard to DG.
According to preliminary analysis by Bárbara Rubim, CEO of Bright StrategiesThe report presented by Senator Eduardo Braga raises points that could generate legal uncertainty, while also including positive aspects for the sector.
Among the passages that most caught the executive's attention are:
- New charge: projects filed after the publication of the MP converted into law must pay R$20,00 for every 100 kWh compensated, until December 31, 2028 — an additional fee that precedes the settlement of accounts;
- Curtailment: the text allows the ANEEL establish mechanisms for sharing the risks of generation cuts among different agents, which, in practice, may include DG in this allocation;
- Ceiling for the CDE: a budget limit is created from 2025, with staggered charges in 2027 (50%) and 2028 (100%) on what exceeds this ceiling.
On the other hand, Bárbara assessed the tax exemption for batteries as positive, stimulating the advancement of energy storage systems (BESS); and the more balanced distribution of the CDE (Energy Development Account).
The MSL (Free Solar Movement), in turn, classified the text presented by the rapporteur as “a hard blow to distributed microgeneration”.
According to the entity, the opinion proposes a double charge on new entrants to the SCEE (Electric Energy Compensation System), since the new rate of R$20,00 for every 100 kWh compensated does not revoke the staggered payment of Fio B, provided for in Art. 27 of Law 14.300/2022.
Despite the criticism, the director recognizes specific advances in the report, especially in the sections focused on energy storage.
"The strategic incentive for batteries is a positive point. Article 22 of the report grants full exemption from federal taxes—IPI, PIS/Pasep, and COFINS—including on imports, for battery energy storage systems (BESS) and their components," Martins noted.
The executive also highlighted that the text authorizes the Executive Branch to reduce the Import Tax rate to zero for this equipment, with a tax incentive ceiling limited to R$1 billion in 2026.
For Carlos Evangelista, president of ABGD (Brazilian Association of Distributed Generation), the report presented by Senator Eduardo Braga “brings important advances and, so far, deserves recognition for its technical soundness and respect for the current legal framework.”
"Regarding the DSO, curtailment, and multipart tariff, it's crucial to emphasize that what was written does not affect distributed generation. Existing contracts were fully preserved, and all rights provided for in Law No. 14.300/2022 were respected. This legal and regulatory consistency reinforces the necessary security for investments already made and the continued expansion of the sector," he assessed.
He also pointed out that the possibility of incorporating battery systems (energy storage) was well received.
"This inclusion represents an important step toward modernizing and increasing the efficiency of the electrical system, allowing consumers greater autonomy, flexibility, and contribution to grid stability — points long advocated by ABGD," he added.
However, the report raises two legitimate concerns for ABGD:
- The new resource supplement charge, proposed for situations in which the CDE limit is exceeded, may generate tariff unpredictability and transfer to the consumer a burden that is not their direct responsibility;
- The creation of the R$200 per megawatt-hour charge on GD2 and GD3 was not positive. This deserves detailed analysis to avoid distortions or risks of undue extension to GD under Law 14.300/22.
"In short, the report preserves fundamental achievements and advances on relevant technical points, such as battery integration. Even so, ABGD will remain vigilant and active, engaging in dialogue with Congress and other entities to ensure that no new burden falls on citizens who produce their own energy, strengthening the principles of justice, predictability, and energy freedom that guide distributed generation in Brazil," Evangelista added.
Heber Galarce, president of INEL (National Institute of Clean Energy), expressed concern about the text presented by rapporteur Braga.
"On behalf of INEL, I express deep concern about the report on Provisional Measure 1304/2025, given the risk it may affect those who invested out of their own pockets to generate clean energy at home—small generators, rooftop owners—by compromising the legal security of these investments, reducing incentives for distributed microgeneration, and penalizing energy autonomy. We are in dialogue with the government to understand where the process has gone astray and ensure a fair, inclusive, and sustainable model for all," he assessed.
Request for views
While acknowledging positive points, the MSL stated that it will request views of the report, with the support of parliamentarians such as Representative Lafayette de Andrada (Republicanos-MG), to carry out a detailed technical analysis and propose highlights that guarantee consumer protection.
“The Free Solar Movement, leading the solar coalition, will calmly analyze the opinion and present proposals together with parliamentarians committed to consumer rights,” concluded Martins, in an interview with Canal Solar.
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An answer
Dear sirs,
Featured on the national news program on October 31st, it shows that over 1 million people lack access to any type of energy. Those who do have access rely on polluting, noisy, and expensive diesel generators, considering both CAPEX and OPEX costs, as stated by some indigenous peoples. The same report presents solar power as an excellent solution that improves artisanal production methods, food preservation, access to traditional media and the internet, similar to the famous and extraordinary "Light for All" project. These examples are often not given the attention they deserve in other media outlets. (Opening a parenthesis;) Finally, a sensible measure was removed from Provisional Measure 1304/25, which, by the joint committee of the National Congress, applied a payment of R$20,00 for every 100 kWh of consumption avoided due to distributed generation (DG) and extended to electricity storage, which would, in many cases, likely make the investment unfeasible. (Engineer and professor.)