Why is Law 14,300 not as good news as it may seem?

The text of the GD Legal Framework has several points of attention and loopholes that give no reason for celebration in the sector
Por que a Lei 14.300 não é uma notícia tão boa como pode parecer
Photo: Bloomberg

After a long period of discussion and so much back and forth in the Legislature, on January 7th of this year, law 14,300 was sanctioned, which established the Legal framework for microgeneration and distributed minigeneration in Brazil.

But, after all, is this a milestone for the sector that should really be celebrated?

I can say that the news is not as good as it may seem for the segment. This is because the text has some points of attention that could become complicated for the photovoltaic solar energy market.

The first is that for many people, the Legal Framework is exactly what was missing in terms of legal security for the generation of photovoltaic solar energy.

But, in our view Ecori Solar Energy, the text of the law does not detail what will happen after the transition period, which does not give us the much sought-after legal certainty.

Furthermore, just because we have a law does not mean it cannot be changed, that is, there is not exactly a guarantee. Therefore, in my opinion, we have even more risks now than we did before.

Another point is precisely what happens after the transition period. The law determines that after this phase, consumers will be subject to the tariff rules determined by ANEEL (National Electric Energy Agency).

The CNPE (National Energy Policy Council) will “listen to society, associations and representative entities, companies and agents in the electricity sector, establishing guidelines for valuing the costs and benefits of microgeneration and distributed minigeneration”.

In other words, it is Aneel that will establish the rates, costs and benefits of distributed generation after 18 months. The risk here comes from history. At other times, Aneel has positioned itself extremely unfavorably to the photovoltaic sector. Who guarantees this won't happen again?

Furthermore, another point that must be considered is the fact that the text does not consider relevant triggers for micro and minigeneration. The solar array in Distributed Generation represents only around 1% of consumer units.

And in this case, what needs to be clear is that although solar energy is growing significantly in the country, consumer units as a whole are also growing. Therefore, disregarding the percentage of relevance of solar energy within the electrical energy sharing system, as well as disregarding the triggers, is a technical error, a market error.

Given all this, we still have to pay attention to the deadlines mentioned in the text. The CNPE has six months to establish the guidelines, while Aneel has up to 18 months to determine benefit valuation calculations.

The deadline for consumers to purchase photovoltaic kits following the old rules is 12 months from the date the law was enacted, that is, it lasts until January 7, 2023.

Having listed the points above, I can say that the rest of the text becomes practically irrelevant. At this moment, what really matters is how each one will build the future of our sector, whether by supporting associations and movements that work in favor of photovoltaic solar energy so that they closely monitor and cover the CNPE and ANEEL and, thus, not institute absurd taxes after the transition period.

Whether acting in an ethical and professional manner, bringing quality to the market with technological solutions such as MLPE, hybrid systems, zero grid, among others, to overcome marketing barriers and provide the customer with the best solution.

Picture of Arthur Santini
Arthur Santini
Director of Ecori Energia Solar. Regional Director of the QuiloWatt do Bem project in the Northwest of São Paulo, certified professor at Fundação Getulio Vargas and MBA professor at other institutions. He worked in auditing for KPMG and had other leadership and consultancy roles in São Paulo, Campinas and São José do Rio Preto. He is an author in the area of technology, with a book published by Editora LCM – Ciência Moderna, in Rio de Janeiro.

10 Responses

  1. A feather. The law does not contemplate the sale of credits that our population longed for and still longs for. In the United States, where I completed my doctorate many decades ago, the sale of solar energy is normal and natural. You pay up to 15 cents per kilowatt.h injected into the grid in some American states. Just watch the American webinars as I always do in my daily life. It's a shame that energy cannot be sold through microgenerators in Brazil as it is in the USA. Furthermore, when I did my doctorate there were 3000 energy concessionaires and the competition was huge, making costs cheaper and the competition made American consumers feel at ease. Congratulations to the Ecori team, which provided first-hand information to the public specializing in solar energy in Brazil. Congratulations Leandro, Rodrigo and the entire Ecori team who bravely drew attention to this law that generates distrust in our population. Just read the many pertinent comments that were signed before me. Congratulations to the author of the article, Arthur Santini, for his courage in going public with the much-desired contradiction of ideas.
    prof. Carlos Argolo (Ph.D.) – Federal University of Alagoas – Federal Institute of Alagoas.

  2. Unfortunately, I think we shot ourselves in the foot… I agree with what the author said, without a technical power trigger, and only dates we will perish in the first year after the vacancy of this blessed Law…

  3. I believe in the hybrid system, but it has to be standardized to be commercialized. Leandro Martins, President of Ecori solar energy, together with his team, will look for solutions for this, as well as others in the field, I believe! freedom for generation!!!

  4. As a consumer and when installing a solar system, I divided it between on grid and off grid, precisely because of this legal uncertainty that exists in Brazil. In the not so distant future it will be more advantageous to have only off grid due to the drop in battery prices and increased useful life; in this system there is no interference from the state as it is isolated from the network

  5. This law helps in the development of hybrid systems. So it will be the next generation of ongrid inverters with UPS or offgrid module

  6. As the author, Arthur Santini, highlighted, there is no legal certainty for the photovoltaic sector. The sector is at the mercy of the interests of giants in the hydroelectric and thermoelectric sector and will unfortunately depend on the benevolence of these companies. It is not possible to imagine a country in which there is a clear possibility of energy shortages in the coming years and punishing the sector in which it does not require government investment to expand electricity. The photovoltaic sector must demand a position on this matter from presidential candidates.

  7. 1. An important point to consider about legal uncertainty after 14,300: Before, we went to court based on an ANEEL Normative Resolution, now we go to court, if we do not agree with a law, and therefore question technical and legally to ANEEL, mitigating the subjectivity of other times.

    2. About the trigger: Very supportive. This is absurd. In developed countries, where this topic of directional energy flows, or rather DG, has already emerged some time ago, they started to look at what to do with 10% of DG mix in the matrix, and to do something with 15%,

    3. About paying attention: It is certainly the only strategy, supported by the theory of pressure groups, and if possible by associations that focus on our real interests. Let's be very critical about who we associate with.

  8. Legal security really is something very volatile given the recent events of abuse of power, among the “powers”...
    As for the “content” of the Law, a false, perhaps dishonest, narrative prevailed, stating that poorer consumers were benefiting richer ones. You don’t need to be a “doctor” to understand what’s behind all this…
    While thousands of people wear the entrepreneurial helmet, putting their savings, their time and their energy into “opening a company”, generating jobs, decentralized wealth, taking risks (yes, because if you are not efficient and competent you will see your savings going down the drain). , energy distributors face ZERO RISK... any market turbulence does not seriously affect their results because the STATE (read “the taxpayers) comes to their rescue and any incompetence or operational inefficiency is COMPENSATED monetarily, sharing the losses with the payer of taxes.
    The best business in the world: a WELL-managed energy distributor
    The second best business in the world: a POORLY managed energy distribution company… Follow the money….

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