Manifesto for distributed generation in Brazil already has hundreds of signatures

O petition created by ABS (Baiana Solar Energy Association) and supported by ABGD (Brazilian Association of Distributed Generation), ABSOLAR (Brazilian Association of Photovoltaic Solar Energy) and INEL (National Institute of Clean Energy), has already gathered more than 600 signatures. The mobilization aims to approve certain amendments to MP 998 (Provisional Measure No. 998/2020), in addition to suggesting the inclusion of a legal framework in favor of the growth of DG (distributed generation) from renewable sources.

According to the government, MP 998, also known as consumer MP, aims to alleviate possible impacts on the value of Brazilians' electricity bills.

To date, the distributed generation sector is regulated by REN 482 (Normative Resolution No. 482/2012) of ANEEL (National Electric Energy Agency). ABS states that with the approval of MP 998, a legal framework would be created for DG, guaranteeing the right of all consumers to generate and consume their own energy, in a clean and renewable way, without unexpected taxes.

Lawyer Bárbara Rubim, vice-president of ABSOLAR (Brazilian Association of Photovoltaic Solar Energy), highlights that MP 998 could be an opportunity for an urgent response to the arrival of a legal framework for DG (Distributed Generation).

“MP 998 has sections that are worrying and that need to be corrected before being converted into Law, but among the almost 200 amendments presented by it, there are some that effectively allow the creation of a good legal framework for the GD”, explains Bárbara.

“In summary, the support and the petition are not for the approval of the MP as it stands, but rather for the approval of the MP whose text, duly amended where necessary, also brings the legal framework of distributed generation, bringing legal and regulatory stability to the sector and compensation rules that recognize all the attributes of distributed generation and allow the continued growth of the sector”, adds the lawyer.

For Tássio Barboza, technical director at ABS, the initiative aims to raise awareness among Brazilians about the legal regulatory risk that the sector is suffering. “The importance of providing this support is that we have, in the near future, a law that deals with GD. So, it is to provide legal certainty to the sector that today is only guided by resolution 482. With the creation of a law, we will know exactly what the rules will be in the coming years. It is also important that a review of the amendments is carried out, because there are some that could destroy the sector, such as amendment 160, which says that the surplus of injected energy must be accounted for at the PLD price”, explains Barboza.

The federal deputy, Lafayette de Andrada (Republicanos MG), responsible for amendment 196 of the provisional measure, explains that the legal framework for the GD is not the purpose of MP 998.

“This topic must be addressed in a specific bill. Even so, I presented a balanced amendment proposal on distributed micro and mini generation, after talking a lot with associations linked to solar energy, such as ANEEL and the Ministry of Mines and Energy. I think that the text I proposed brings peace of mind to the sector and investors, in addition to providing an opportunity for the less privileged to have access to solar energy. Ultimately, it is a gigantic gain for all of Brazil, but this is not the scope of the aforementioned Provisional Measure”, highlights the deputy.

Guilherme de Lucena Chrispim, president of the ABGD board, highlighted the importance of supporting the manifesto. “This petition is a request from several industry associations, as we believe this is long overdue. The change from resolution to law brings certainty to the market, from small to large investors. We need an order that says which rules will apply for the coming years, this is the fundamental point”, he commented.

According to a note provided by INEL (National Institute of Clean Energy), support for the inclusion of an amendment on distributed generation in MP 998/2020 is the result of the urgent need to standardize the topic through a Federal Law, as currently, the sector which generates thousands of jobs and moves millions annually in the country, experiences constant insecurity.