Resolution that stimulates the production of oil and gas in fields of marginal cost-effectiveness is published

On August 12, 2022, the Brazilian Council for Energy Policy (“CNPE”) published Resolution No. 05/2022, which determines measures to encourage development and production of fields and accumulations with marginal (low) profitability, specifically providing for the reduction of royalties in marginal fields.

The new Resolution establishes certain guidelines to be followed by the National Agency of Petroleum, Natural Gas and Biofuels (“ANP”), which are:

1. to grant, based on pre-established criteria, the reduction of royalties to the legal minimum (5%);
2. to implement strategies in order to reduce the regulatory burden, aiming at modernization, debureaucratization, simplification, and accelerated regulatory processes;
3. to consider the following guidelines for the contractual extension of fields with marginal profitability:
   1. carry out the term extension for fields only if such extension is feasible beyond the original contractual period;
   2. assess and approve plans and programs that specify the activities necessary to regularly carry out and maintain production, in accordance with the best practices in the oil industry; and
4. make the term extension compatible with production expectations, limited to 27 years.

It is important to highlight that the reduction of royalties for additional production in mature fields and for small and medium-sized companies had already been provided for in previous resolutions. After years of studies and regulatory discussions, such reduction was also extended to include production in marginal fields. According to the ANP, the purposes of the Resolution are to prevent premature deactivation of fields, create better conditions for the efficient use of existing reserves, increase the recovery factor, and stimulate production from blocks with marginal accumulations of oil and natural gas.

The new rule also establishes that the ANP must notify operators of fields if they remain inactive for six (6) consecutive months so that they either resume production within twelve (12) months, with the possibility of a term extension, based on new plans and programs to be approved; or transfer the rights over the fields to companies that are committed and have the capacity to resume production.

Additionally, the ANP is expected to interact with Brazil’s Energy Research Office (“EPE”) to present a report to the CNPE with proposals for the regulation of mechanisms that mitigate and compensate greenhouse gas emissions in hydrocarbon exploration and production activities.

To access CNPE Resolution No. 05/2022, click here.

New ANP Resolution reviews rules for payment to landowners

On August 30, 2022, ANP Resolution no. 883/2022 was published, providing revisions to the rules established by ANP Ordinance No. 143/1998 regarding the payment of equity rights on production for landowners, allowing for more flexibility in the application of the standard rate reduced between 0.5% and 1%.

ANP Ordinance No. 143/1998 already regulated the application of a 1% percentage for payment to the landowner, allowing the exception of a 0.5% percentage in the following cases: (a) marginal fields; and (b) field-school projects. As soon as the new Resolution is enacted, the equity amount due to landowners will not depend on whether they are marginal fields and/or school-field projects, and will be applicable to other fields, depending on the rules of the corresponding concession contract.

Regardless, the reduced percentage will only apply to contracts from future bidding roundsand will not affect fields currently in production and current landowners.

To access the ANP Resolution No. 883/2022, click here.

UPCOMING PUBLIC CONSULTATIONS AND HEARINGS  

Below is the list of public consultations published by the ANP whose contribution periods are still open:

RELEVANT DECISIONS

ANP concludes the first classification analysis of marginal fields

On August 05, 2022, the Collegiate Board of the ANP approved the results of the first classification analysis of oil and natural gas fields that present marginal profitability or production, based on the rules established by ANP Resolution No. 877/2022. Among the total of 433 fields analyzed, 302 were classified as marginal. Such classification will allow the ANP to advance discussions related to production incentives to these fields.

In addition, the ANP published an interactive consultation page containing the list of fields classified as marginal.

For further information, click here. To access the interactive page, click here.

Bidding for the Ametista Block under the Production Sharing Open Acreage program is authorized

On August 24, 2022, the Brazilian Government published in the Federal Official Gazette CNPE Resolution No. 4, of June 23, 2022, which enables bidding for the Ametista Block in the Production Sharing Open Acreage program. The Ametista Block is located on the continental shelf of the state of São Paulo and is partially within the Pre-Salt polygon, in the Santos Basin.

CNPE Resolution established as government equity for Ametista Block the amount of BRL 1,759,914.00 in subscription bonuses and the percentage of 6.01% as profit oil offered to the Government. In order to define the parameters above, the CNPE considered the geological risk of the offered block and currently available data. The Resolution aims to attract investments to the offered area. For the minimum local content, the parameters of the last bidding rounds carried out by the ANP were maintained, which are:

• Exploration phase: mandatory global minimum of 18%;
• Production Development phase: a minimum of 25% for Well Construction; 40% for the Collection and Flow Systems; and 25% for Stationary Production Unit;

It is important to highlight that the minimum mandatory percentages of local content defined above will not be subject to waiver of any contractual commitment.

Considering the inclusion of the Ametista Block, the Production Sharing Open Acreage program currently has twelve (12) blocks available for offers. In December 2021, the CNPE had already approved the bidding of the Esmeralda, Sudoeste de Sagitário, Bumerangue, Tupinambá, Cruzeiro do Sul, Ágata, Jade, Itaimbezinho, Água Marinha, Norte de Brava and Turmalina blocks, by means of CNPE Resolution No. 26/2021 (click here).

To access Resolution No. 4/2022, click here.

Local Content: ANP approves study report regarding certification activity

On August 25, 2022, the ANP’s Collegiate Board approved the regulatory impact analysis report (“AIR”) concerning the proposal to amend ANP Resolution No. 19/2013, which defines the criteria and procedures for carrying out local content certification activities.

The Agency identified opportunities for improvement in the regulation, specifically regarding the definition of the “Total Amount of the Complete System”, specifically for systems of foreign origin without a commercial transaction tax document. According to the ANP, the goal is to ensure the application of the calculation method of local content deduction in foreign supplies that contain incorporated Brazilian components, based on the provisions of the Local Content Booklet, part of Annex II of ANP Resolution No. 19/2013.

For further information, click here. To access the AIR Report of the ANP’s Local Content Superintendency (“SCL”), click here.

Open Acreage Concession: ANP approves inclusion of 218 blocks in the Equatorial margin

On August 25, 2022, the ANP approved the insertion of 218 blocks located in  the Brazilian Equatorial Margin (“MEQ”) into the Open Acreage Concession (“OPC”). Such decision was based on CNPE Resolution No. 27/2021, and adds 90,321.65 km² to the OPC’s offered area.

With the aforementioned alterations, areas in the following basins were included:  Foz do Amazonas, Pará-Maranhao, Barreirinhas, Ceará and Potiguar. Consequently, there was an increase of about 300% in the number of blocks under study in the Brazilian Equatorial Margin, increasing from 71 to 289 exploration blocks.

For further information, click here.

Studies to indicate Pre-Salt Polygon areas for inclusion in bidding round are approved

On August 25, 2022, the ANP’s Collegiate Board approved geological and economic studies for the definition of four blocks to be included in a future ANP bidding round. One block is located in the Santos Basin and three blocks are located in the Campos Basin, all within the Pre-Salt Polygon.

The studies carried out will be submitted for analysis by the Ministry of Mines and Energy, which has the legal authority to propose to the CNPE, considering the opinion of the ANP, the blocks that will be subject to concession or production sharing regimes, as well as the offer system and parameters to be adopted for each of them.

OPORTUNITIES

Upstream Oportunities 

Petrobras releases teaser for sale of mineral rights

On August 11, 2022, Petrobras announced that it has launched a teaser for the sale of its mining rights for research and mining of potassium salts located in the Amazonas Basin, including 34 mining securities (títulos minerários). Among the securities offered, eight are related to mining concessions and four are related to mining requirements. The remaining securities are related to research authorization procedures for future mining.

To access the full teaser, which provides detailed information about the opportunity and the criteria required for the selection of potential participants, click here.

Petrobras announces the sale of interest in Potiguar Basin blocks

On August 16, 2022, Petrobras released a teaser for the sale of 40% of its interest in the BM-POT-17 exploratory concessions, where the Discovery Assessment Plan for the Pitu well is being carried out (POT-M-853 and POT-M-855 Blocks), and POT-M-762, located in the deep waters of the Potiguar Basin, Equatorial Margin, off the coast of Rio Grande do Norte. Currently, Petrobras holds 100% interest in these concessions and, after the sale, it will remain as the operator with 60% of its interest in the assets.

For further information, click here.

The teaser, comprising detailed information about the opportunity and the mandatory criteria for selecting potential participants, can be found here.

Petrobras announces non-binding phase of asset sales in logistics and refining

On August 19, 2022, Petrobras announced that it has initiated the non-binding phase for the sale of its refining and logistics assets in Brazil, including the refineries (i) Abreu e Lima (“RNEST”), located in Pernambuco, (ii) Presidente Getúlio Vargas (“REPAR”), located in Paraná, and (iii) Alberto Pasqualini (“REFAP”), in Rio Grande do Sul.

According to the company, all potential buyers who have qualified for this phase will be eligible to receive a memorandum with detailed information about the assets for sale, as well as instructions on the divestment process, containing the necessary guidelines for the completion and submission of non-binding proposals.

For further information, click here.

Public bidding opportunities with Petrobras

Below are the main contracting opportunities made available by Petrobras so far, through the Petronect platform (click here to access):

** Please note that the deadlines in the table above are constantly changing, so they correspond to deadlines disclosed at the time of publication of this newsletter.

Read full in Portal Petronect

OTHER TOPICS

ANP releases consolidated data of oil and gas production in June

On August 04, 2022, the ANP published the Monthly Newsletter of Oil and Natural Gas Production, including the consolidated data of the national production for the month of June. Approximately 2.828 MMbbl/d (million barrels per day) of oil and 133 MMm3/d (million cubic meters per day) of natural gas were produced, totaling 3.664 MMboe/d (million barrels of oil equivalent per day).

The Pre-Salt region was responsible for 75,3% of domestic production. As of May 2022, upon the execution of contracts from the 2^nd Transfer of Rights Surplus Production Sharing Bidding Round, production in the Atapu and Sépia fields were distributed in two separate contracts, one under the assignment for onerous transfer (cessão onerosa) system and the other under the production sharing regime.

The utilization of Natural Gas was of 96.7%. According to the Agency, 53.5 MMm³/day were made available to the market and gas burning during June amounted to 4.3 MMm³/d.

For further information, click here.

Supply Alert No. 03/2022 published

On August 12, 2022, the ANP published Supply Alert No. 03/2022/SDL/ANP, which aims to maintain the monitoring of the A S10 diesel oil market.

As of August 15, 2022, the measure establishes that Petrobras and Refinaria de Mataripe S.A. must inform the date of departure in the port of origin of the cargoes that have not yet been nationalized when importing A S10 diesel fuel, directly or through foreign trade agents, together with the Bill of Lading, the volume and the expected date of arrival at the destination port in Brazil, in addition to any restrictions on the contracting of cargoes of the product or perception of risk for these imports, including possible setbacks during the transit of cargoes.

The Agency also pointed out that any changes in production forecasts for A S10 diesel oil during the second half of 2022, including as a result of unscheduled refinery shutdowns, must also be reported by oil and natural gas producers.

To access Supply Alert No. 03/2022/SDL/ANP, click here.

ANP holds public hearing on reduction of targets

On August 17, 2022, the Agency held Public Hearing No. 15/2022, which addressed the amendment of ANP Resolution No. 791, of 2019, regarding the National Biofuels Policy (RenovaBio). The public hearing sought to include mechanisms that will address the systematic reduction of distributors’ individual targets, under a condition authorized by the CNPE through art. 2 of CNPE Resolution No. 08/2020, which provides for the acquisition of biofuels through long-term supply contracts.

The CNPE’s rule authorized the reduction of individual targets for fuel distributors, through the acquisition of biofuels subject to long-term supply contracts. Such reduction is to occur in accordance with the ANP’s regulations.

Some of the main proposals in the draft include:

• the establishment of minimum contractual terms for applying the reduction, established differently for each biofuel, considering its particularities and level of maturity of the markets;
• the reduction scale for different contract terms, offering greater discounts to those with longer duration. As such, 50% of the Decarbonization Credits (“CBIOs”) generated from biofuel volumes contracted and withdrawn in minimum term contracts, 75% of the CBIOs generated from biofuel volumes contracted and withdrawn in one-year contracts longer than the minimum, and 100% of the CBIOs generated from biofuel volumes contracted and withdrawn in two-year contracts longer than the minimum, may be deducted from the distributors’ targets;
• the incidence of reduction percentages on the quantity of CBIOs equivalent to the volume contracted and withdrawn by the distributor, which must be calculated using the CBIO emission factor (tCO2eq/L) of the Efficient Production of Biofuels Certificate for each contracted producing unit at the time of the generation of the involved volumes for the issuance of CBIOs, per invoice submitted by the contracted producing unit on the CBIO Platform;
• a 20% limitation of the reduction from the distributor’s individual target, in respect of the provisions of art. 7 of Decree No. 9888 of 2019, regardless of the quantity of contracts and volume; and
• annual assessment of contract compliance for target reduction purposes, according to the date of the electronic invoices sent through the CBIO Platform during the contract period, so that distributors can enjoy the reduction of the targets annually, even if the contract lasts for several years.

To access the recording of Public Hearing No. 15/2022, click here.

Decree on the calculation of reference prices for government takes is published

On August 18, 2022, Decree No. 11,175 was published, which enabled the ANP to include in its regulatory agenda the revision of the methodology for calculating reference prices used to determine the governmental takes applicable to the activities of exploration, development and production of oil and natural gas (E&P), amending Decree No. 2,705, of August 3, 1998.

According to the new regulation, the monthly reference price to be applied will be established by the ANP and will be based on (i) the physical-chemical characteristics of the oil produced; and (ii) the reference quotes of oils and derivatives adopted by the international market. Prior to the publication of Decree No. 11,175/2022, Decree No. 2,705/1998 established that the reference price of oil would be determined based on the average monthly value of a standard market basket composed of up to four similar types of oil quoted in the international market.

Decree No. 11,175/2022 also enables the ANP to consider the conditions for marketing the production of oil and natural gas of small and medium-sized companies.

For further information, click here.

To access Decree No. 11,175, of August 17, 2022, please click here.

Federal Government proposes Bill providing for third-party access to transportation infrastructure

On August 19, 2022, the Federal Government submitted to the National Congress Bill No. 2316/2022 (“Bill”), which proposes to change the rules of third-party access to transportation infrastructure for the oil and biofuel industry.

The initiative proposes to amend Law No. 9478/1997 (“Oil Law”) in order to allow interested parties to have access to “other infrastructure defined by the ANP”. Therefore, the proposal extends the access rules currently in force, since the current wording of the Oil Law allows third-party access only to transportation pipelines and marine terminals.

The Bill also creates obligations for owners of the transportation infrastructure, such as: (i) to announce the capacity available for contracting by interested third parties; and (ii) to enable third-party access, barring any requirement of a partnership with the owner of the facilities.

It is also worth noting that companies that carry out oil production activities or are authorized by the ANP to carry out activities of liquid fuel distribution, liquefied petroleum gas distribution, petroleum refining, natural gas processing, or biofuel production must incorporate a subsidiary or contract companies with specific attributions to operate pipelines and waterway terminals for transportation of oil, petroleum products, natural gas, and biofuels.

Finally, the Bill also amends Law No. 9,847/1999, to establish penalties in the event of non-compliance with the duties of ensuring access to third parties.

To access the recording of Bill No. 2316/2022, click here.

ANP holds public hearing to review resolution on geochemical data delivery

On August 19, 2022, the ANP held a public hearing on the draft regulation that proposes the review of ANP Resolution No. 725/2018, which provides for procedures and deadlines for delivery of geochemical data to the Agency. Seeking to clarify and simplify, the new version brings changes on compliance with the rules established by the regulation in force and, consequently, promotes the reduction of non-compliance levels regarding the delivery of such data.

The proposal aims to update the ANP3 Standard, which establishes the method, procedures and deadlines for the delivery of geochemical data to the ANP. In addition to this update, the proposal intends to correct structural problems, simplify the standard, and make it less prescriptive, prioritizing the results reported.

For further information, click here. To access the recording of Public Hearing No. 14/2022, click here.

ANP Board approves partial result of the 3^rd Cycle of the Open Acreage Concession

On August 19, 2022, the partial result of the 3^rd Cycle of the Open Acreage of Concession (“OPC”) for exploration, recovery and production of oil and natural gas was published in the Federal Government’s Official Gazette.

On August 18, 2022, the Collegiate Board of the ANP ratified the partial result, mentioning 40 of the 59 blocks awarded in the cycle. The 40 blocks were granted to 11 bidders.

The qualification and adjudication procedures for the remaining blocks are still in progress.

The next steps will be the submission, by the winning companies, of the financial guarantee for the Minimum Exploratory Program (PEM), the delivery of mandatory documents, and payment of subscription bonuses offered in the round. Subsequently, the concession contracts are expected to be signed by November 30, 2022.

During the round, 59 blocks, located in the Santos, Pelotas, Espírito Santo, Recôncavo, Sergipe-Alagoas Potiguar, and Tucano basins were acquired by 13 winning bidders, with an expected investment of at least BRL 406,290,000.00 within the first years of contracting. The area bought was 7,854.91 km², with offered signature bonuses of BRL 422,422,152.64.

For further information, click here.

ANP holds public hearing on LPG supply

On August 30, 2022, the ANP held Public Hearing No. 18/2022, which discussed a measure concerning the national supply of liquefied petroleum gas (“LPG”), popularly known as cooking gas, when used in cylinders.

The initiative sought to meet compliance requirements of CNPE Resolution No. 21/2021, which established guidelines and obligations for the ANP to proceed with the national LPG supply, regarding the process of disposal of Petrobras’ refining assets and associated infrastructure, included in the Commitment to Cease Practices (“TCC”) entered into between the company and the Brazilian Administrative Council for Economic Defense (“CADE”).

The Resolution established the obligation of the ANP to publish, by October 29, 2022, a regulation on the transitional provision of infrastructure and critical systems for the national supply of LPG, i.e., the provision of infrastructure determined as essential for the continuity of supply, for a certain period.

The proposed Resolution on the subject provides that the tanker chartered by Petrobras and anchored in the Port of SUAPE will be defined as critical infrastructure for the national LPG supply. The tanker has been anchored in the Port of SUAPE for many years, having been used as essential infrastructure to ensure LPG supply, especially in the Northeast Region.

The Draft proposes that Petrobras continue to be responsible for chartering the tanker, on a transitional basis, for three years (and may be renewed for up to three more years). This period was considered sufficient for a perennial facility (water transportation terminal) to be built and operated by interested parties, ensuring the continuity of LPG supply in the region. During this period, Petrobras will be paid for the services rendered in the tanker and is obligated to disclose the rates charged for these services.

For further information, click here.

ANP publishes interactive tool to allow consultations in its 2022-2023 Regulatory Agenda

On August 31, 2022, the ANP released the Regulatory Agenda’s Dynamic  Dashboard, an interactive tool that enables consultations on actions that make up the ANP’s regulatory planning for the period of 2022-2023.

The data currently available concern the survey carried out in the first half of 2022, so possible actions completed in the second half of the year are not yet included.

To access the Regulatory Agenda’s Dynamic Dashboard, click here.

HIGHLIGHTS

Legal Framework for DG vetoes enacted

On August 05, 2022, after rejection by Brazil’s House of Representatives, the vetoes of Law No. 14,300/2022 (Legal Framework for Distributed Microgeneration and Minigeneration) were enacted, which allowed:  

1. the division of generating plants into floating generation units placed on the water surface of natural and artificial water reservoirs, dams, and lakes, for classification as micro or mini DG (Paragraph 3 of Art. 11 of the Law); and  

1. the framing of mini distributed DG projects in the Special Incentive Regime for Infrastructure Development (REIDI), for investment purposes by the Investment Fund for Participation in Infrastructure (FIP-IE) and the Investment Fund for Participation in Intensive Economic Production in Research, Development, and Innovation (FIP-PD&I), as well as for the issuance of Infrastructure Debentures. 

Read in full

ANEEL regulates Decree No. 10,893/2021 for authorization grant requests made without submission of Access Information

On August 15, 2022, after a long waiting period and many questions, the National Electricity Regulatory Agency (“ANEEL”) published the REN No. 1.038/2022, which establishes procedures and guidelines for the application processes for authorization grants filed until March 02, 2022, without the requirement of an access document as per art. 1 of Decree No.10.893/2021.  

Since the publication of the Decree in December 2021 and the opening of Public Consultation No. 8/2022 on the topic in March 2022, the Resolution has been intensely debated and highly anticipated by the sector, especially by companies that applied for authorization grants without Access Information for the connection of their projects to the electricity system, and by companies that had Access Information with characteristics or deadlines different from the authorization grant request, which had resulted in their authorization request processes being suspended. 

Our team prepared a client alert on the topic, which you can read here. 

Offshore wind: Senate Bill approved

Decree 10,946/2020, which regulated offshore wind power generation, is a milestone in the ongoing debate about this form of energy generation.  

On August 26, 2022, the Federal Senate approved Bill No. 576/2021, which had been on hold until the publication of the abovementioned Decree, at which time the debate came back into the spotlight at the instigation of the Infrastructure Services Commission.  

The text establishes provisions such asthe possibility of energy prisms granted for offshore energy generation being used for assignment for exploitation of other activities, such as mariculture.  

In parallel, following the publication of the regulating Decree, the existence of offshore wind complex projects with environmental licensing processes open at the Brazilian Institute of Environment and Renewable Natural Resources (“IBAMA”) has increased considerably. The graph below, made available by IBAMA, shows the significant increase, and that there are currently 66 projects under licensing, with a total power output of 169,441 MW: 

In the scope of ANEEL, although Public Consultation No. 039/2022 has been initiated, which improves requirements for authorization grants provided for in Normative Resolution No. 876/2020, ANEEL reinforced that the resolution on the operation of offshore wind plants will be carried out in a specific process and will not be part of this standard. 

Read in full– Substitute to PL No. 576/2021 approved

Read in full – IBAMA offshore wind map (Aug/22)

NEWS

CCEE notifies plants participating in the Simplified Competitive Procedure (“PCS”) that are more than 90 days overdue

 On August 01, 2022, the Electric Energy Trading Chamber (“CCEE”) issued a notice to the market, informing them that it has notified plants participating in the PCS that are more than ninety (90) days overdue.  

In October 2021, due to the water shortage situation in the country, ANEEL held the PCS, an emergency auction aimed at contracting reserve capacity in the Southeast, Midwest, and South subsystems, which resulted in the contracting of 17 (seventeen) projects, which would be responsible for supplying energy from May 2022 until December 2025.  

It emerged that, of the 17 (seventeen) projects, only 6 (six) entered into commercial operation within the deadline. Taken into consideration that, according to the rules of the competition, projects not delivered on time could lead to contract termination, the CCEE sent the aforementioned notification.  

Read in full

Traders will need to submit balance sheets by the end of April 2023 for the 2022 audit

On August 02, 2022, the CCEE presented a communication to its agents, informing them that traders who adhered to CCEE must submit their audited balance sheets for the year 2022, by the end of April 2023, to be classified according to their equity, in compliance with REN No. 1,014/2022.  

With the submission of the balance sheets, the agents will be classified into two subgroups, Type 1 and Type 2, as shown in the following table:  

These amendments derive from the rules established by REN No. 1.014/2022 and will be put into practice only in May 2023.  

Such measures aim to bring more rigidity and security to the entry and maintenance criteria for the electricity sector. Furthermore, from the Resolution’s entry into force, financial information, and documents declaring fiscal regularity and economic, financial, and technical suitability will be required annually from the trading companies. 

Read in full

CEMIG publishes auction notice for the purchase of energy from incentivized sources 

On August 08, 2022, CEMIG Geração e Transmissão S.A (CEMIG GT) published a public notice of the auction for the purchase of wind and solar energy in the free market in the Southeast, Midwest, South, and Northeast submarkets, which will take place on October 17, 2022.  

The projects that will participate in the auction, with injected power equal to or less than 300,000 kW, will have a 50% discount on the Tariffs for Use of the Transmission and Distribution System (“TUSD/TUST”) for trading energy with incentives.  

In addition, the long-term power purchase and sales contracts are limited to a duration period of 15 and 10 years, respectively, starting in 2026.  

Read in full – Public Notice  

ANEEL amends resolution concerning ONS assignments

In April, ANEEL published Normative Resolution (“REN”) No. 1017/2022, which provided for the assignments of the Brazilian National Electric System Operator (“ONS”) to carry out the activities of coordination and control of the operation of power generation and transmission in the interconnected systems.  

On August 09, 2022, the Resolution underwent a small amendment through REN No. 1.037/2022, to correct a material error. This is because the previous wording conflicted with Decree No. 5,081/2004 by “authorizing” the ONS to perform its assignments when, in fact, the authorization was given by the Executive Branch through the Decree.  

With the semantic adjustment, ANEEL “regulates the performance” of the ONS.  

Read in full

A-6 auction is canceled due to a lack of demand. A-5 Auction will be held, with Public Notice published

On August 15, 2022, the Ministry of Mines and Energy (“MME”) informed that it communicated to ANEEL the non-need to hold the 2022 A-6 New Energy Auction, due to a lack of demand by energy distributors. 

However, according to a statement from the MME, despite the offer of generation projects, there is not enough demand for contracting in the regulated environment.  

This is a result of several different measures, including the proposal to open up the market, the expansion of distributed generation, and the exit from the quota system by Eletrobras’ plants. Still, specialists were not surprised with the position adopted by the concessionaires, considering the Brazilian economic scenario.  

In parallel, on August 17, 2022, ANEEL published the Public Notice for the A-5 Auction.  

The public session will take place on October 14, 2022. 

Read in full– CCEE News 

See full – Auction Notice A-5

MME publishes Technical Note on the export of electricity to neighboring countries.

On August 18, 2022, the MME published Technical Note No. 19/2020, with the analysis of the assignments to the MME Public Consultation No. 96/2020, which addressed the export of electricity from constrained-off hydroelectric plants.  

The MME has improved the modalities for importing and exporting electricity to promote the conscious use of natural resources and energy availability—fundamental mechanisms to strengthen energy integration with neighboring countries, bringing more benefits to the sector and, mainly, to consumers. 

In the coming weeks, the MME Ordinance with the consolidated guidelines will be published. 

Read in full

ANEEL Resolution repeals Art. 33 of REN No. 1,033/2022 regarding PROINFA’s regulatory acts

On August 23, 2022, REN No. 1,039/2022 was published, which repealed Art. 33 of REN No. 1,033/2022, effective as of September 01, 2022. 

The repealed article determined that, in cases where the average generation of electric energy of the generation enterprise did not meet the defined limits, ANEEL would be responsible for notifying the agent about the possibility of exclusion from the Energy Reallocation Mechanism (“MRE”), according to the subsequent calculation: 

Where:
M: Defined in Article 32 of REN 1.033/2022;
GM: Average generation of electric energy, obtained from Article 32 of this Resolution;
GF: physical guarantee of the project in effect at the time of the calculation.

PUBLIC CONSULTATIONS AND PUBLIC HEARINGS

WHAT’S COMING UP

	16 de September 16, 2022 – New Energy Auctions A-5 Notice: ANEEL More information here
	September 30, 2022 – Auction for contracting Reserve Capacity, in the form of reserve energy under the terms of Law No. 14,182/2021 Notice: ANEEL (to be published) More information here
	December 2022 – New Energy Auctions A-1 and A-2 Notice: ANEEL (to be published) More information here
	December 2022 – Transmission Auction No. 2/2022 Notice: ANEEL (to be published) More information here