The creation of the legal framework for DG (distributed generation), with the approval of the Bill 5829, should bring approximately R$50 billion in benefits to the electricity sector by 2035. This is what a calculation carried out by ABS (Bahia Solar Energy Association) and INEL (National Institute of Clean Energies) and presented on Wednesday afternoon (7) during a press conference on PL 5829 indicated. According to the study, this amount is the result of the positive impact of DG in the country.
According to the analysis, the legal framework for DG will help maintain the water volume in reservoirs, reduce electrical losses and, consequently, reduce the need to activate tariff flags. For this calculation, engineer Tássio Barboza, Technical Director of ABS and Deputy Secretary of Technical Affairs at INEL, considered the positive impacts of DG on the Brazilian energy matrix, unlike the study presented by ANEEL (National Electric Energy Agency), which according to Technical Note No. 188/2019, did not 'quantify the potential benefits of distributed generation on system costs'.
See below the analysis of costs and benefits of GD to the electrical system.
- Sources: CCEE, ONS, ANEEL, EPE prepared by INEL
Still according to the calculation, even without considering any benefits of DG to the electrical system, the impact of DG on the CDE (Energy Development Account) with PL 5829 would still be less than 5% in the worst case. (See below).
During the virtual meeting, representatives from ABS, ABGD (Brazilian Association of Distributed Generation), ABSOLAR (Brazilian Association of Photovoltaic Solar Energy), Abiogás (Brazilian Biogas Association) and AbraPCH (Brazilian Association of PCHs and CGHs), in addition to INEL and the technical advisor of PL 5829, Ricardo Costa, the urgency of the approval of PL 5829 was highlighted.
According to the entities, the sense of urgency exists because ANEEL made available last week the new draft of REN 482 (Normative Resolution No. 482/2012) and, if the National Congress does not approve the legal framework for GD by June 30, the Agency may make changes to the compensation system.
If this occurs, there will be a 62% drop in profitability for DG, which, according to experts in the sector, would make DG unviable in Brazil, with paybacks that could exceed 22 years.
Draft harms GD in Brazil
According to the associations' assessment, the draft presented by ANEEL aims to meet the expectations of distributors, using as justification the opinion of the TCU (Federal Court of Auditors). For the ABSOLAR, the measure taken by ANEEL represents a signal that the Agency has broken its word before the agents of the GD sector, the National Congress and society.
ABGD filed a writ of mandamus with the STF against the TCU ruling
“It even seemed like an April Fools joke, but unfortunately, it isn’t. ANEEL broke the trust of industry players and the National Congress. It wasn't long ago that the ANEEL declared that it would leave it up to Congress to decide on the DG system. However, the proposal brought forward managed to go beyond the absurdity presented in October 2019 and not only disregarded all the benefits of DG, but is also an affront to the National Council for Energy Policies. We all know how urgent it is to approve a new legal framework for the sector, via Bill 5829”, highlighted lawyer Bárbara Rubim, vice-president of the Board of Directors of ABSOLAR.
Ao Canal Solar lawyer Marina Meyer, legal director of ABGD, commented that the new draft prepared by the Agency brings as an update of resolution 482 alternative 5, presented at the end of 2019. “The ANEEL disregarded all the conversations he had with the sector for more than two years (…) which means ending DG throughout Brazil. We cannot accept this”, said Marina.
