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Home / Articles / Opinion Article / Benefit of REIDI for the distributed generation sector

Benefit of REIDI for the distributed generation sector

Find out the reasons why ANEEL expressed itself in the sense of removing the benefit for micro and mini distributed generation systems
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  • Photo by Einar Tribuci Einar Tribuci
  • April 1, 2021, at 06:00 PM
4 min 54 sec read
Canal Solar - Benefits of REIDI for the distributed generation sector
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The REIDI (Special Incentive Regime for Infrastructure Development) benefit is an old one (Law No. 11.488, of June 15, 2007) and well known to players operating in the centralized power generation market.

Summarizing what this benefit provides, it basically exempts the country's infrastructure assets (in the transport, ports, energy, basic sanitation and irrigation sectors) from PIS and COFINS contributions, in relation to the goods, materials and services incorporated into the asset. , both in domestic and foreign acquisitions.

One question that still exists among players in the generation sector is whether this benefit is also valid for the implementation of micro or mini distributed generation systems. This article aims to clarify the reasons why ANEEL (National Electric Energy Agency) expressed its intention to remove the benefit of REIDI for the distributed generation sector.

Public administration acts on the topic

On December 16, 2016 the ANEEL provoked the Federal Prosecutor's Office, through Memorandum No. 360/2016-SCG/ANEEL, which culminated in the preparation of Opinion No. 00001/2017/PFANEEL/PGF/AGU, very well founded, despite the frustration of not being in favor of granting the REIDI benefit for distributed generation provided for in REN 482/2012.

In short, the opinion states that qualification for REIDI is restricted to projects that have been “approved” and that are within the scope of energy, generation, co-generation, transmission and distribution. Furthermore, the opinion states that in the case of distributed generation there is no commercialization of electrical energy, that its consumers cannot be confused with free or special, and that in order to carry out self-production of energy, specific authorizations from the public entity are required.

The aforementioned opinion was used on other occasions to support documents issued by ANEEL such as, for example, Circular Letter No. 0010/2017-SRD/ANEEL, March 22, 2017. Note what is established regarding REIDI in the GD:

“9. Therefore, we understand that generating units that have been qualified for REIDI cannot qualify as microgeneration or distributed minigeneration and, therefore, participate in the Electric Energy Compensation System, since these installations were made viable through the enjoyment of a benefit provided due to their original condition, when they were characterized by infrastructure work in the electrical energy sector.

10. It is up to the distributor, therefore, to identify enterprises qualified for REIDI – which intend to fit into REN no. 482/2012 – and deny their adherence to the Electric Energy Compensation System.”

A ANEEL was surgical in relation to the limits of its jurisdiction, as it does not have the power to decide on tax matters. According to the letter, it prohibited the possibility of consumers joining the Electric Energy Compensation System if they have obtained the benefit of REIDI to implement micro or mini distributed generation assets.

Furthermore, it left the responsibility to the distributor to carry out this inspection, which is a complex mission and requires technical knowledge that distributors, as a rule, do not have.

In the administrative proceedings no. 48500.004330/2017-6, which had as one of the interested parties ABRAPCH (Brazilian Association for the Promotion of Small Hydroelectric Power Plants), of the distinguished director of ANEEL At the time, Reive Barros dos Santos also used the opinion to support his vote, which on the merits, denied provision for the classification of micro and mini distributed generation units in REIDI.

The Department of Grants of Concessions, Permissions and Authorizations, of the MME, questioned the General Legal Consultancy of the Union, about the possibility of classifying a distributed minigeneration project in REIDI, but in response issued Opinion No. 00250/2017/CONJURMME/ CGU/AGU, of March 29, 2017, understanding that "The generation of energy through distributed generation mining, under the terms of REN No. 482/2012, as it currently stands, is incompatible with the tax benefits provided by REIDI”.

Conclusion

As a counterpoint to all the arguments presented in the documents mentioned above, it is also important to remember that participants in the Electric Energy Compensation System, especially distributed mini-generation, are obliged, under Resolution 482, to participate financially in the costs of any improvements and reinforcements required in the distribution system.

Energy self-producers, despite obtaining a grant provided for in Ordinance of the Ministry of Mines and Energy No. 310/2013, from a macro point of view, are not acting differently from “prosumers”, as both generate energy for themselves , with the only difference being the installed power in power generation assets, which for distributed generation is limited to 5 MW.

If on the one hand the ANEEL prevented concessions from being required in distributed generation and contracts for use and connection to the grid as a generator from being required from prosumers. These were replaced by other mechanisms, and although absent, they can be understood by law as tacit authorizations, precisely to reduce bureaucracy in all the energy evolution that will occur, whether with the benefit of REIDI or without it.

In any case, the discussion is not easy, and at least up to the present date, we are unaware of any prosumer interested in obtaining the REIDI benefit to implement micro or mini-distributed generation systems, within the scope of Resolution 482.

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ANEEL (National Electric Energy Agency) self-producer of energy MMGD (micro and mini distributed generation) REIDI (Special Incentive Regime for Infrastructure Development)
Photo by Einar Tribuci
Einar Tribuci
Professor of the course Taxes on Consumption and Generation of Electrical Energy at Canal Solar. Graduated in Law from São Judas Tadeu University in São Paulo, and holds a specialization in Tax Law from the Pontifical Catholic University of São Paulo. With a career spanning over 20 years, Tribuci has extensive experience in tax consulting and planning, working on tax reviews for medium and large-sized companies. He is the owner and partner of the law firm Tribuci Advogados.
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Answers of 2

  1. Avatar EMTEVOLT Photovoltaic Technology Consulting Company Ltd. said:
    19 July 2023 to 08: 31

    Dr. Einar Tribuci.
    Your comments are efficient for me to induce my understanding that: if micro and mine generators have tacit authorization for inclusion in REIDI, I conclude that the benefits of their inclusion in REIDI are expected.

    Reply
  2. Avatar Luiz Eduardo Moreira said:
    December 14 from 2021 to 20: 29

    Dr. Einar

    I really liked the article and I would like to know if this understanding is still in force today.

    We are going to set up a mini-plant and the benefit from REIDI would have a considerable impact on our Result.

    Reply

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