Lafayette de Andrada presents new base text for the GD legal framework

New proposal was received with optimism by sector entities and awaits approval in the Chamber of Deputies
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Deputy Lafayette de Andrada (Republicanos/MG) presented late Monday afternoon (8), a new base text for PL 5829/19, which aims to establish the legal framework for DG (distributed generation) in the Brazil, among other measures.

According to the parliamentarian, the changes made to the proposal's substitute, which is scheduled to be voted on this Thursday (11), were made to guarantee the continued growth of the sector in the country. According to the text, the changes will come into force 12 months after the publication of the Law. 

The proposal also determines that consumers with an access request protocol within 12 months of the publication of the Law will have their right guaranteed until 2046, bringing more legal security to photovoltaic projects.

Furthermore, generation systems along with the load, shared generation, EMUC, self-consumption up to 200 kW and dispatchable sources of any modality will have a Fio B payment schedule ranging from 0% in 2022 to 100% in 2033. 

Check below how payment for Fio B will be made according to the new text presented:

Source: ABSOLAR/Reproduction

“A kind of milder scheduling was created for shared generation of lower power, in which there is a time curve where consumers pay more for Wire B until the moment they get the 100%”, explained Bernardo Marangon, specialist in electrical energy markets.

“This reduction over time is interesting, because in any investment analysis, the first years are the most important for obtaining a return. I believe it is a good proposal for the sector”, added the expert.

Also according to the text, systems above 200 kW will pay 100% in Fio B taxes from the period the Law comes into force. According to lawyer Bárbara Rubim, vice-president of Distributed Generation at ABSOLAR, with this definition it is important for professionals to carry out an economic analysis to assess the profitability of the investment.

In Bernardo Marangon's assessment, the new proposal made by Lafayette is interesting for all sectors involved. “For distributed generation, it is a much less aggressive proposal than in relation to the material initially published by ANEEL. GD is impacted by losing some profitability on investment, but it remains strong”, he highlighted.

Asked about the impact on investments in DG, the specialist pointed out that these will be more evident in larger projects. “People with higher power pay for the contracted demand as consumers, but there will be a change in this regard. The project will pay demand as a generator, which mitigates the impact of a possible non-compensation of Fio B”. 

Union of the sector in favor of GD

The new proposal was well received by solar sector associations, who are working together to present suggestions for the new text. For Hewerton Martins, president of the MSL association (Movimento Solar Livre), it is a time for all solar energy associations to come together. “Everyone has to come together and turn this page. We hope that together we can make amendments [to the text] that bring improvements to the installer at the end of the line. Now it is important that we work together”, he said during a live broadcast this Tuesday.

Ronaldo Koloszuk, president of the Board of ABSOLAR (Brazilian Photovoltaic Solar Energy Association), highlighted that the solar sector reached an important understanding this Tuesday. “Now, united, with the same purpose, we will all focus on approving this important legal framework that will bring legal certainty to the development of our sector. GD brings benefits to the entire population, but harms the interests of large economic groups, which is why we need everyone's engagement and participation. Let's show together that the country has everything to gain when this clean and cheap source grows in all states”, he emphasized.

ABGD (Brazilian Association of Distributed Generation) stated that it helped in the construction of the replacement presented yesterday by Congressman Lafayette and is attentive to movements in the Legislature. “ABGD supports the CBEE (Brazilian Electric Energy Code) presented by federal deputy Lafayette Andrada, with an entire chapter dedicated to GD. The CBEE text suggests that consumers who generate their own energy pay only for the use of the wire (tariff B), and in a progressive manner, so that there is time to adapt”, informed the association on its social networks.

Heber Galarce, president of INEL (National Institute of Clean Energy) said that it is very gratifying to follow the current situation of distributed generation in the country. “It is the materialization of a vision that has always justified our purpose of existence, as a national clean energy institute; expansion and intensification of qualified dialogue with the public sector; whether at the municipal, state or, mainly, federal level. The latter has been our full-time focus for the last year. There is a lot to be done, but after the processing of this PL, we have already started to look at what the second step will be”, he said.

Picture of Henrique Hein
Henry Hein
He worked at Correio Popular and Rádio Trianon. He has experience in podcast production, radio programs, interviews and reporting. Has been following the solar sector since 2020.

One Response

  1. Good afternoon. My name is Wilker and I am a photovoltaic system user.
    I didn't understand the point " The proposal also determines that consumers with an access request protocol within 12 months of the publication of the Law will have the right guaranteed until 2046, bringing more legal security to photovoltaic projects.

    Furthermore, generation systems along with the load, shared generation, EMUC, self-consumption up to 200 kW and dispatchable sources of any modality will have a Fio B payment schedule ranging from 0% in 2022 to 100% in 2033.”

    In this case, will only those who file within a maximum of 12 months after the law be approved be exempt from immediate taxation? What about those who have already purchased your system and have been using it for 1 year, would you start paying immediately? And in my specific case, as I purchased the system for my residence 1 year ago and it has a power of over 200kW, I will also not be exempted until 2046? I find it incoherent to charge those who already have the system installed, regardless of the power initially, it would have to be exempt until 2046, as Aneel itself had already made available for this. Where is Legal Security for those who have already installed it?

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