With Congressional approval, Proinfa incentives are extended for another 20 years

Last Tuesday (17), the National Congress overturned some of the presidential vetoes to the legal framework for offshore wind power (Law 15.092/2025), sanctioned in January of this year.

The decision reinstates a series of provisions that increase subsidies to incentivized sources, which, according to ABRACE (Association of Large Industrial Energy Consumers and Free Consumers), could increase electricity bills. The estimated cumulative impact is R$197 billion by 2050.

Among the points resumed is the 20-year extension of contracts for projects linked to Proinfa (Program for the Incentive of Alternative Sources of Electric Energy), which includes PCHs (small hydroelectric plants), biomass plants and wind farms. 

These contracts will have their prices readjusted based on the ceiling price of the 6 A-2019 Auction, corrected by the IPCA – replacing the IGP-M as the update index.

Currently, Proinfa brings together 140 operational contracts, with 131 plants in operation (60 PCHs, 52 wind power plants and 19 biomass thermoelectric plants) totaling 2.975 MW of installed capacity, according to ENBPar (Brazilian Nuclear and Binational Energy Participation Company), responsible for managing the program.

Another reestablished point provides that enterprises that accept the contractual extension will also be entitled to tariff discounts as provided for in Law 14.182/2021.

Congress also maintained provisions that require the contracting of new sources. These include 250 MW of energy generated with liquid hydrogen extracted from ethanol in the Northeast and 300 MW from onshore wind farms in the South of the country. 

Furthermore, the compulsory contracting of PCHs was expanded: from 2 GW to 4,9 GW, with 3 GW in the Central-West, 1,5 GW in the South and Southeast regions, and 400 MW in the Northeast.

For ABRACE, the overturning of the vetoes compromises the competitiveness of energy in the country. “We regret that a country with Brazil’s potential continues to waste opportunities, making its energy matrix more expensive and dirty. Energy could be the great vector of transformation for a more prosperous, less unequal country with the capacity to decarbonize its industry and compete globally with green products,” the entity stated in a press release.

Source: Senate Agency

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