Last Tuesday (14), the Senate Joint Committee held a public hearing to discuss MP (Provisional Measure) 1.304/2025, which will lose its validity if it is not voted on by November 7.
The proposal, which seeks — among other issues — to change the rules for subsidies and incentives in the electricity sector, has generated a strong reaction from representatives of renewable sources, especially DG (distributed generation).
During the 5th edition of the Canal Conecta, which is being held between October 20th and 21st at CREA-SP, in São Paulo (SP), Hewerton Martins, president of MSL (Free Solar Movement), and Heber Galarce, president of INEL (National Institute of Clean Energy), exposed behind the scenes and concerns about the impact of the MP on the solar sector.
Criticism of the disproportionate responsibilities
Hewerton Martins questioned the narrative that distributed generation is responsible for the main problems in the electricity sector, including curtailment. "Does it make sense that distributed generation, which represents 5,6% of the country's energy in 2024, is blamed for more than 90% of the problems in the Brazilian electricity sector?" he asked.
The professional highlighted that EPE reports, ANEEL and ONS confirm that there has never been a blackout caused by DG and reinforced that the country is wasting clean energy. "Brazil is throwing away solar energy. When we look at the EPE report, the only source doubling in size is thermal. Solar is growing, but it doesn't double. How is it possible for the PDE to predict such a large increase in thermal power to balance the system?" he asked.
Consumer empowerment and competition with large groups
Martins recalled that the DG regulation, created in April 2012, was intended to empower consumers. Today, however, technological advances and the popularization of solar systems have generated friction with large groups in the electricity sector. "What the large groups want is to take away DG's share. They didn't expect the price of solar energy to fall so much or for it to gain favor with the poorest population," he stated.
According to him, when the "consumer finally has access to technology, with a volume of installations accessible to the middle and lower classes, the large groups — which hold the monopoly in the electricity sector — begin to feel uncomfortable."
The professional ironized the contradiction between institutional perception and market behavior. "When they install solar panels in the Supreme Court, it's an energy efficiency project. But when consumers do the same, it becomes a problem."
Omission
Heber Galarce, meanwhile, recounted the atmosphere of the Senate hearings. "The impression I had in the last hearings was that we were representing the solar sector against many people. I sincerely hope the Palace starts to address this issue."
Galarce emphasized that, despite the rhetoric of "fairness and balanced competition," the MP's supporters ultimately seek to remove only the GD subsidies. "During the MP 1.304 committee, they said that GD was harming the sector because of the subsidies. I stood up and suggested—in a provocative tone—removing subsidies from everyone. No one raised their hand. In other words, they want to remove subsidies only from GD."
He also criticized the behavior of leaders in the electricity sector. "There is a great deal of negligence and cowardice on the part of important figures, who fail to address the root of the problem—the need for a management shake-up at the Ministry of Mines and Energy. It's easier to attack our sector."
Industry plans protest before COP 30
Galarce and Martins announced that the sector plans to organize a large demonstration before COP 30 in Belém, Pará, as a way to draw international attention to the issue. "We are seeking authorization for the event. We want to show that Brazil is about to destroy thousands of jobs and limit consumers' right to generate their own energy," Martins stated.
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