Insights > Newsletters

Newsletters

Energy Newsletter | No 5 – December 2022

January 6th, 2023

In order to keep our clients informed about the current landscape of the main energy and natural resources sectors in Brazil, we have prepared the Energy Newsletter, a monthly bulletin with the main news of the energy market.

This information channel is the result of the collaboration between our “Oil & Gas” and “Energy” teams.

The newsletter was designed within the context of the energy transition that is being targeted in Brazil, and drafted as a complete source of information about the dynamic Brazilian energy market within the oil, natural gas, electricity and renewable energy sectors.

Enjoy reading!

This newsletter is for informative purposes only and does not constitute legal advice for any specific operation or business. For more information, please contact our team of lawyers.

 

 

Oil and Gas
HIGHLIGHTS

New versions of bid notice and draft agreements of Open Acreage Offering approved

On December 15, 2022, the Collegiate Board of the Brazilian National Agency of Petroleum, Natural Gas and Biofuels (“ANP”) approved the updated version of the notice and draft agreement of the Open Acreage Offering (“OPC”).

The new version of the notice includes an updated list of the exploration blocks that make up the OPC. In addition, the update introduces a simplified concept of certification, which extends the duration of a round to 120 days and introduces the possibility of opening a new round soon after the end of an ongoing round without the need to wait for its approval.

Following the approval by the Collegiate Board of the ANP, the new versions of the bid notice and draft agreements will be referred for examination by the Brazilian Federal Audit Court (“TCU”), which will have 90 days to evaluate the update. The publication of the new instruments is expected for March 2023.

 

 

NEWS

12 blocks under analysis for inclusion in the Open Acreage Offering

On September 01, 2022, the Collegiate Board of the ANP approved the referral of 12 exploration blocks for analysis regarding their inclusion in the Open Acreage Offering. Among these 12 blocks, ten are located in the Amazon Basin (Bacia do Amazonas), while the other two are located in the Tacutu Basin (Bacia do Tacutu).

Upon the referral of these 12 new blocks, there are 1,030 exploration blocks under analysis for inclusion in the Open Acreage Offering.

Click here for more details.

.

ANP publishes new Incident Reporting Manual

On December 06, 2022, the ANP published the new consolidated version of the Incident Reporting Manual, which is applicable to all sectors regulated by the ANP.

The new version of the Manual seeks to guide regulated agents regarding criteria and procedures of incident reporting to the ANP, under ANP Resolution No. 882, of 2022.

The resolution will enter into force on February 01, 2023, along with the new version of the Manual. Resolution No. 882 establishes procedures for:

incident reporting; and

submission of investigation reports:

i. by operators of oil and natural gas exploration and production agreements; and

ii. by companies authorized to carry out activities within the scope of the oil, natural gas and biofuels industry.

Click here to access the Manual.

.

Open Acreage Offering: 58 concession agreements signed

On December 08, 2022, the ANP held a ceremony for the signing of concession agreements for blocks sold in the 3rd Round of the Open Acreage Offering.

At the time, 58 concession agreements were entered into by the following companies: 3R Areia Branca S.A. (bidder – 3R Petroleum Óleo e Gás S.A.); Ecopetrol Óleo e Gás do Brasil Ltda; Energy Paraná Ltda (bidder – ENP Ecossistemas Energéticos Holding S.A.); Imetame Energia Ltda; Newo Óleo e Gás Ltda; NTF Óleo e Gás S.A.; Origem Energia S.A.; Petroborn Óleo e Gás S.A.; Petro-Victory Energia Ltda; Seacrest Petróleo S.A; Shell Brasil Petróleo Ltda; and TotalEnergies EP Brasil Ltda.

The execution of these agreements generated BRL 422,217,152.64 in signing bonuses, and BRL 405,250,000.00 in investments, exclusively within the exploration phase of the agreement.
.
.

Four blocks sold in 1st Round of Production Sharing Open Acreage

During the 1st Round of the Open Acreage under the Production Sharing Regime (“OPP”), held on December 16, 2022 by ANP, four out of 11 offered blocks were sold. This generated BRL 916,252,000.00 in signing bonuses, which represents 72% of the maximum amount that could potentially have been generated if all 11 blocks had been sold.

According to the Director-General of the ANP, Rodolfo Saboia, the success of the OPP’s 1st Round ensured a minimum investment of BRL 1.44 billion in the sold blocks. Additionally, in regard to the Água Marinha block, the minimum percentage of oil surplus was exceeded by 220% and, in regard to the Norte de Brava block, the percentage offered had a surcharge of almost 171.73% compared to the minimum percentage required.

Click here to access the results of the OPP Round and the full article.

.

Public Consultation regarding E&P Operational Safety Regulations

On December 15, 2022, the Collegiate Board of the ANP approved the carrying out of a public consultation and public hearings to review regulations providing for operational safety at oil and gas Exploration & Production facilities (“E&P”). ANP intends to consolidate five resolutions and their respective provisions into a single rule, in order to establish a set of management standards that can be applied to any type of facility.

Click here to access Public Consultation and Public Hearing No. 28/2022.

.
Normative Instruction regarding analysis of contractual extension and royalty reduction approved

On December 15, 2022, the Collegiate Board of the ANP approved Normative Instruction No. 11/2022 (“IN”), which establishes guidelines for the analysis of requests for extension of concession and production sharing agreements for oil and natural gas production fields.

The rule establishes matters that must be taken into consideration in order to secure the extension of the agreements, such as prioritizing a continuous stream of production in the fields, sustainable exploration production, short-term investments in reservoir recovery, among other measures aimed at securing larger financial return to Brazil, considering the extension of such agreements.

Click here to access ANP IN No. 11/2022 in full.

 

ANP and AGENERSA sign agreement to study natural gas regulation

On December 21, 2022, ANP entered into a technical cooperation agreement with the Energy and Basic Sanitation Regulatory Agency of the State of Rio de Janeiro (“AGENERSA”), in order to develop studies on the regulation of activities carried out by the natural gas industry within the state (RJ) and federal scopes.

According to the ANP, the agreement will stimulate discussions regarding the New Gas Market, in addition to providing for:

training and qualification concerning the regulation of piped natural gas, compressed natural gas (CNG) and liquefied natural gas (LNG);

exchange of relevant information in regard to the regulation of the natural gas industry;

collaborative studies on general regulatory matters of transportation, distribution and sale of natural gas; and

studies on the scope of responsibilities regarding the regulation of the use of biogas from different sources.

The agreement will be effective for five years, and can be extended by the parties involved through an Amendment.

 

E&P Dynamic Sustainability Dashboard published

On December 21, 2022, ANP released a Dynamic Dashboard for Sustainability in E&P Facilities, which:

consolidates information on the environment (intensity of emissions resulted from production) and operational safety (oil spills, serious injuries and fatalities); and

provides a comprehensive overview of sustainability aspects involved in upstream operations, that can be monitored by the public.

Click here to access the ANP Dynamic Sustainability Dashboard.

 

Public consultation regarding calculation revision of Oil Reference Price extended.

The ANP extended, until May 09, 2023, the deadline for contributions to Public Consultation No. 24/2022. The Public Consultation reviews ANP Resolution No. 874/2022, which established criteria to fixate the Oil Reference Price (ANP Resolution No. 874/2022).

The Oil Reference Price is adopted for the calculation of shares owed to the Government. As such, the purpose of Public Consultation No. 24/2022 is to improve regulation providing for the matter and render reference prices more compatible with international market prices.

Click here to access Public Consultation No. 24/2022.

 

Power +

HIGHLIGHTS

Consequences of emergency contracting of power plants and PCS

On December 07, 2022, the Brazilian Federal Audit Court (“TCU”) concluded the trial for the investigation of alleged irregularities concerning the Simplified Competitive Procedure for Contracting Reserve Capacity (“PCS”) No. 12021.

The TCU recommended that the Ministry of Mines and Energy (“MME”) examine whether the contracts must be maintained, terminated or renegotiated, due to the high costs involved in the contracting of these plants, and the fact that part of such plants had not initiated operations on the stipulated date.

As a result, the MME published Normative Ordinance No. 55 on December 19, 2022, containing the guidelines and conditions for the amicable resolution of such contracts, exempting the parties involved from paying a fine for contract termination, provided that the following requirements are met:

The seller must submit to the Brazilian Electricity Regulatory Agency (“ANEEL”), the Amicable Resolution Agreement, for which there is a draft in the Normative Ordinance, within 60 days from the publication of the Ordinance.

Until the Amicable Termination Agreement is submitted, no event of termination can be defined:

i. based on Clause 10 of Reserve Energy Contracts within the modality of “energy quantity”; and

ii. based on Clause 12 of Reserve Energy Contracts within the modality of “energy availability”.

All payments and receivables due by the parties up to the date of termination must have been carried out, including penalties for failure to deliver energy.

Read in full – TCU Decision

Read in full – MME Normative Ordinance

 

MME proposes to improve Brazilian legal frameworks for power, mining, oil, natural gas and biofuels sectors

On December 08, 2022, the MME submitted 26 proposals for public policies, delivered by the so-called “Mining and Energy Market Initiative” (“IMME”).

The proposals aim to improve the Brazilian legal frameworks and attract investments within the power, mining, oil, natural gas and biofuels sectors.

As for the power sector, the proposals involve:

Market Opening for Low-Voltage Consumers of residential and rural classes. This measure enables consumers to opt for products that best meet their consumption needs.

Draft proposal for:

i. Bill No. 414/2021, which aims to expand the free market; and

ii. Normative Ordinance No. 54/GM/MME, which aims to better adjust the Special Incentive Regime for Infrastructure Development (“REIDI”) to short-term transmission projects.

Improvement to the planning of isolated systems and to the next auctions. If implemented, such guidelines will stimulate competition and renewable solutions in Amazon, in order to facilitate access to information about the effective generation cost in each location, increase predictability and reduce tariff charges.

Finally, IMME highlighted measures already in force, such as Normative Ordinances No. 50/2022, which provides for the Market Opening for High-Voltage Consumers, and No. 53/2022, regarding the inclusion of transmission improvements in Priority Debenture Projects.

Read in full – 26 MME proposals

 

Decree changes regulations on granting of concession agreement associated with privatization

On December 23, Decree No. 11,307 was published, which changed the regulations on the granting of concession contracts for energy generation associated with privatization.

As a result of this change, the requirements for granting the respective concession agreement are the following:

i.Request or ratification of a previous privatization application to the MME.

ii. A public service concession agreement for energy generation must be in force at the time the request is formalized, with a remaining concession period of more than 42 months, counted from the contractual term or from the granting act.

iii. Privatization of the legal entity that holds the public service concession for power generation, through equity interest sale, including stock control, capital increase or opening, with the total or partial waiver or assignment of subscription rights, as long as the operation is carried out through a public offering on the stock exchange or public distribution of securities on the primary or secondary markets;

iv. Payment of the concession granting amount, as applicable.

v. Completion of the privatization process with a remaining concession period of more than 12 months as of the end of the contractual term or the granting act.

The concession agreement draft must be approved by ANEEL and will be part of the public notice for the privatization auction, which will indicate the minimum concession granting amount.

Finally, in cases of privatization carried out through the sale of stock control by capital increase or public listing, with waiver or assignment of subscription rights, the concession amount will correspond to the minimum amount established by the Minister of Mines and Energy and the Minister of Finance. 

Read in full – Decree No. 11,307

 

Decree regulates bidding and extension of transmission concessions

On December 29, 2022, Federal Decree No. 11,314/2022 was published, which regulates the bidding and extension of public service concessions of power transmission at the end of their effective period.

The Decree is the result of Public Consultation No. 136/2022 of the MME, aimed at receiving contributions to the proposal to establish guidelines for the treatment of power transmission concessions at the end of their effective period.

Some highlights of the Decree include:

Transmission concessions whose contracts are about to expire must be put up for bidding. Contract renewal will only be permitted in specific cases.

The MME will establish upgrades, reinforcements and new facilities related to the transmission facilities whose concessions will expire. Such information must be included in the Electric Power Transmission Grants’ Plan and must be informed to ANEEL at least 36 months before the contract expires.

ANEEL can establish the regulatory suitability of assets granted in new contracts through the transfer of assets of transmission concessions at the end of their effectiveness period. The adjustment to such requirements can be carried out through the transfer of Other Transmission Facilities (“DIT”) from the concession’s asset base to the distributors connected to them.

Facilities shared among transmission companies can be transferred to the existing concession that shares such facilities, provided that there are benefits for their operations.

The bidding procedure for concessions at the end of their effective period will adopt the criteria of the lowest amount of annual revenue for the provision of public services, and assets related to the provision of such services will not be reverted previously to such services, without prejudice to the right to compensation of the former concessionaire.

The compensation for unpaid assets that will be transferred to the new concession will be paid by the bid winner to the new concessionaire.

It is possible to carry out the new bidding procedure along with assets of other transmission facilities, or include upgrades, reinforcements and new facilities provided by the sector planning to guarantee an updated service, according to the Electric Power Transmission Grants’ Plan.

The former concessionaire can participate in the bidding procedure.

The extension of the concession can only be carried out when the bidding procedure is unfeasible or results in damage to the public interest, provided that it is requested by the concessionaire at least 36 months before the contract expires and the unfeasibility or damage is justified by ANEEL, after public consultation. The MME will decide on the extension up to 18 months before the contract expires.

Read in full – Federal Decree No. 11,314/2022

 

Guidelines for import of non-refundable interruptible power released

On December 29, 2022, Regulatory Ordinance No 60/GM/MME was published, containing the guidelines for the import of non-refundable interruptible power to Argentina and Uruguay.

The Brazilian Electricity System Operator (“ONS”) will receive offers for the import of power from interested trading agents, who must necessarily:

comply with the sectorial obligations of the Electric Energy Trading Chamber (“CCEE”);

be authorized by the MME to carry out import activities;

comply with the specific regulations for contracting, calculation and settlement of charges for the use of the transmission system;

submit offers regarding amount and price, considering losses, with the delivery of energy at the Center of Gravity of the National Interconnected System (“SIN”).

The regulation also allows ONS to order the energy import (although partially), provided that such import enables the reduction of SIN’s operating costs.

The regulation establishes that ONS can consider imports as an additional resource for SIN, as a replacement for thermoelectric generation, provided that:

there is an authorization from the Power Sector Monitoring Committee (“CMSE”);

the import offer price is lower than the Differences Settlement Price (“PLD”);

to supply power products defined by ONS, whenever they present a competitive advantage compared to other energy resources of SIN.

Imported energy may be settled in the Short-Term Market (“MCP”), and the costs of importing power can be recovered through a tariff to cover system service costs.

Read in full – Normative Ordinance No. 60

 

NEWS

Existing Energy Auctions held 

On December 02, 2022, the A-1 and A-2 Existing Energy Auctions were held, which moved about BRL 440 million for the supply of energy between January 2023 and December 2025.

The average discount in negotiations of the A-1 Existing Energy Auction was estimated at 28.72%, resulting in savings of BRL 43 million in energy tariffs to end consumers.

On the other hand, the average discount in negotiations of the A-2 Existing Energy Auction was estimated at 12.03%, resulting in savings of BRL 45.6 million in energy tariffs to end consumers.

Read in full

 

PRODIST rules are changed by ANEEL

On December 07, 2022, ANEEL published Normative Resolution No. 1,050, amending Annex V of Normative Resolution No. 956/2021, which regulates the Electric Power Distribution procedures in the National Electric System (“PRODIST”).

In short, the amendments establish that public lighting management equipment used for measuring and billing must meet the requirements provided for in the metrological legislation, as well as metrological instructions from INMETRO and ANEEL.

Read in full – Normative Resolution No. 1,050

 

Changes in Rules of Transmission Services

On December 09, 2022, ANEEL published Normative Resolution No. 1,052, which approved the revision of “Module 1 – Glossary” and “Module 3 – Facilities and Equipment” of the Rules of Transmission Services.

The amendment intended to consolidate rules on the sharing of Transmission Facilities. Therefore, the National Electric System Operator (“ONS”) will submit the proposal of amendment to ANEEL, within 90 days from the publication of the aforementioned Resolution.

In addition, Normative Resolution No. 1,054 has also revised Module 3 to correct material errors.

Read in full – Resolution No. 1,052

Read in full – Resolution No. 1,054

 

Rule changes calculation basis of power eligible for hydroelectric generation displacement

On December 09, 2022, ANEEL published Normative Resolution No. 1,053, amending art. 37 of Normative Resolution No. 1,030.

The amendment provided for the eligibility criteria for thermoelectric generation dispatched due to electrical constraints, to be considered in the displacement of hydroelectric generation.

The new Resolution complemented Normative Resolution No. 1,030, which established that the amount of power linked to hydroelectric displacement would only be calculated by the Electric Energy Trading Chamber (“CCEE”) after the eligibility criteria had been defined and approved by ANEEL.

Read in full – Normative Resolution No. 1,053

 

MME improves the suitability of short-term transmission projects in REIDI

On December 08, 2022, Normative Ordinance No. 54 was published, which excluded projects for reinforcement or upgrades in facilities for the concession of power transmission from the Special Incentive Regime for Infrastructure Development (“REIDI”) and established conditions and procedures for projects to be framed in such incentive regime.

The amendment aims to ensure greater agility in the execution of projects, as well as to mitigate obstacles to system users and transmission concessionaires.

Read in full – MME Publication

Read in full – Normative Ordinance No. 54/GM/MME

 

CCEE creates Monetary Update tool

CCEE has implemented a Monetary Update Calculator on its website, which simulates the application of inflation rates and interests on:

Short-term Market Operations (“MCP”)

Fines

Reserve Energy

Surplus and Deficit Compensation Mechanism (“MCSD”)

Surplus Sale Mechanism (“LVM”)

Physical and Nuclear Energy Quotas

Recounting

Access the Inflation Adjustment Calculator here

 

Three-Year Plan of the National Hydrogen Program announced

On December 14, 2022, the MME opened Public Consultation No. 147/2022, in order to receive contributions to the Three-Year Work Plan of the National Hydrogen Program (“PNH2”).

The purpose of this Public Consultation is to establish the Federal Government guidelines for the development of the hydrogen sector.  The Public Consultation will be available for contributions until January 30, 2023 (a period of 45 days from the publication of Ordinance 713/GM/MME).

This Public Consultation is the result of the work of the PNH2 Management Committee, government agencies and entities and the Thematic Chambers in charge of the hydrogen development plan.

The PNH2 aims at steering the actions of the Federal Government toward the development of the hydrogen sector in the next years.

See in full – MME’s publication on Public Consultation No. 147/2022

 

 

Ordinance releases draft proposal for the implementation of Margin Competitive Procedure

On December 21, 2022, Ordinance No. 716/GM was published, which opened for public consultation the draft proposal of Guidelines of the Competitive Procedure for Contracting of Flow Margin for Access to the National Interconnected System (“SIN”), called Margin Competitive Procedure (“PCM”).

The PCM’s context is the race for grants following the approval of Law No. 14,120/2021, which consisted of several applications for access to the transmission system filed by agents of the sector, in a quantity greater than the system’s capacity and also greater than the demand projected for a future period. Therefore, the PCM will provide more reasonable and straightforward access to the SIN.

Interested parties can submit contributions they consider pertinent by January 23, 2023, calculated from the date of publication of the respective Ordinance, through the Ministry’s Portal.

See in full- Ordinance No. 716/GM

 

 

New auction schedule for contracting energy and transmission

On December 21, 2022, Ordinance No. 57/GM was published, which released the auction schedule for the years 2023, 2024 and 2025 regarding:

Auctions for the Purchase of Energy from New Generation Projects

Auctions for the Purchase of Energy from Existing Generation Projects

Auctions for Contracting Capacity Reserves

Auctions for Supply of the Isolated System

On December 23, 2022, Normative Ordinance no. 58/GM was published, announcing the schedule for the Public Service Concession Bidding for Electric Power Transmission.

Check the timeline in the “What’s Coming Next” section of this bulletin, containing the aforementioned dates.

See in full – Ordinance No. 57/GM

See in full – Ordinance No. 58/GM

 

Power Trading Rules approved, applicable to the System of Accounting and Settlement for 2023

On December 22, 2022, ANEEL published Normative Resolution No. 1,051/2022, which approved the CCEE’s Power Trading Rules, applicable to the System of Accounting and Settlement (“SCL”), which will enter into force in January 2023.

In addition, the resolution amended ANEEL Normative Resolution No. 1.009/2022, to allow the participation of Public Administration entities from the Federal Government, States, Federal District and Municipalities in the Free Energy Market, even if they do not have the same Corporate Tax Number (“CNPJ”), represented by their respective Political body.

Paragraph 3 of art. 167 of ANEEL Normative Resolution No. 1,009/2022 was also repealed, to allow a Free Consumer to request to be registered at CCEE as a Special Consumer.

Read in full – Normative Resolution No. 1,051/2022

 

 

MME establishes conditions for contracting Supply Solution

On December 27, 2022, Normative Ordinance No. 59/GM/MME was published, which establishes conditions for contracting the Supply Solution in the auction modality, to supply the consumer markets of concessionaires, permit holders and authorized agents of electric power distribution services and facilities in the Isolated Systems.

The rule also applies to government bodies appointed to provide public power services.

Auctions will be held based on planning proposals presented annually by the distribution agents, in order to meet the demands of consumer markets in isolated systems. Based on these proposals, the MME will establish the guidelines for carrying out the supply auctions, which will be held by ANEEL.

The Ordinance also determined the creation of a Portal for Monitoring Isolated Systems (“PASI”), containing market, geographic and economic data of all the Isolated Systems, gathered by the Energy Research Company (“EPE”), in order to automate and streamline the processes of collection, analysis and disclosure of planning data.

Read in full – Ordinance No. 59/GM/MME

 

Decree on National Dam Safety Policy published

On December 27, 2022, Federal Decree No. 11,310/2022 was published, which regulates Law No. 12,334/2010 and provides for inspection activities and the federal governance of the National Dam Safety Policy.

The Decree lists the activities that comprise the inspection, such as monitoring the fulfillment of the developer’s obligations regarding the maintenance of dam safety conditions, as well as checking for irregularities, in order to, if necessary, determine violations and apply penalties and precautionary measures.

Read in full – Decree No. 11,310/2022

 

Energy and Power Requirements Booklet for PDE 2032 published

On December 27, 2022, MME and EPE published a new Energy and Power Requirements Booklet for the PDE 2032, to address the topic of “Centralized Generation of Power: Energy and Power requirements.”

The Booklet contains projections for the sector regarding the next 10 years.

Read in full – Energy and Power Requirements Booklet for PDE 2032 

 

“Energy and Environment” Booklet published

On December 27, 2022, MME and EPE published the “Energy and Environment” booklet.

The document introduces social and environmental issues to be analyzed, as well as strategic social and environmental challenges, such as:

compatibility of power production, generation and transmission with biodiversity conservation;

compatibility of power generation and production with other water uses; and

mitigation and adaptation to climate change.

Finally, the document points out strategic social and environmental opportunities.

Read in full – “Energy and Environment” booklet

 

 

MME publishes results of public consultation on market opening

On December 28, 2022, MME published a report containing contributions received through Public Consultation No. 137/2022, which provided for the opening of the free market for low voltage consumers and received contributions from 53 agents.

As disclosed by MME, “more than 94% of the agents were in favor of the proposal to open the market for low-voltage consumers” and “22% of the favorable agents proposed conditions for the opening, that is, they argue that some issues should be discussed and established prior to the approval of the proposal at issue.

The next step is the publication of the MME Normative Ordinance providing for the matter.

Read in full – Report

 

ANEEL publishes rule on the use of the land around basic network substations

On January 03, 2023, ANEEL published Normative Resolution No. 1,055/2022, which addresses the regulatory treatment associated with the isolation of Basic Network substations by generation facilities, as well as the impacts on the expansion and access to substations due to the transmission line routes around them. The regulation also approves amendments to Modules 1 and 3 of the Transmission Rules, to adapt to these new rules.

Read in full – Normative Resolution No. 1,055/2022

 

ANEEL approves minimum and maximum PLD limit for 2023

On January 04, 2023, Ratifying Resolution No. 3167/2022 was published, which approved the maximum and minimum limits of the Differences Settlement Price (PLD) for 2023.

As decided, the Maximum Structural PLD will be BRL 678.29/MWh, the minimum PLD will be BRL 69.04/MWh and the Maximum Hourly PLD will be BRL 1,391.56/MWh.

The resolution also approves the amounts for:

Ancillary Services Rate, which will correspond to BRL 9.02/Mvar-h;

Energy Optimization Rate, fixed at BRL 15.05/MWh; and

Itaipu Energy Optimization Rate, fixed at BRL 69.04/MWh.

Read in full – Ratifying Resolution No. 3,167/2022

 

 

 

Renewable

HIGHLIGHTS

CCEE introduces Hydrogen Certification for the Brazilian market

On December 07, 2022, CCEE launched the first Hydrogen Certification for the Brazilian market. The document provides for guidelines to certify the origin of the hydrogen from low-carbon emission sources.

The purpose of this project, in addition to bringing environmental benefits, is to increase the confidence of investors in the Brazilian industry.  

Initially, inputs were divided into two categories:

100% renewable inputs, manufactured from wind, solar or hydroelectric power.

Partially renewable inputs, which count on the complement of some other source, such as thermoelectric projects.

Interested parties can have their hydrogen certified upon filling out a form available on the CCEE’s website. The information submitted through such form will be analyzed and returned in approximately ten days.

Read in full – CCEE article on the matter

Access the CCEE page on Certification here

 

 

ANEEL discusses the transition rule for SCEE’s billing

On December 22, 2022, ANEEL released Technical Note No. 237/2022-SGT/ANEEL, which establishes standards for applying the billing on rules of the Electric Energy Compensation System (“SCEE”), applicable to consumer units with distributed micro or mini generation.

As a result, the Board of Directors of ANEEL decided to publish the reduction percentages, per distributor, to be applied to the Tariffs on the Usage of Distribution Systems (“TUSD”) and the Energy Tariff (“TE”) and establish the application tariff used in consumption billing associated with the SCEE.

This measure regulates article 27 of Law No. 14,300/2022 (“Legal Framework for Distributed Generation”), which established the gradual incidence of tariff components of the Fio B TUSD – remuneration of assets, regulatory reintegration quota and operation and maintenance cost.

Read in full

 

..

NEWS


ANP: Diplomatic delegation visits CCS project in the U.S.

On December 12, 2022, ANP carried out technical visits to the facilities of the National Sequestration Education Center, in order to obtain knowledge regarding carbon capture and storage projects (“CCS”) aligned with ethanol fuel production.

The visit evidences the relevance of the topic to the ANP, given that, in addition to ongoing legislative discussions regarding CCS regulation, Brazil has great potential for the implementation of CCS projects, not only in the Central-West region – given that the production of ethanol fuel is substantial in this region –, but also in offshore areas, where carbon capture is directly related to oil and gas E&P operations.

Click here to read the full article.

 

 

 

 

OPORTUNITIES

TYPE DESCRIPTION CONTRIBUTION PERIOD CODE / NOTES
Petrobras Contracting EPC (Engineering, Procurement and Construction) services for the Revamp Project of the Diesel Hydrotreatment Unit (U-272D), to be implemented at Henrique Lage Refinery (REVAP). January 30, 2023 | 5:00 PM Petronect Code No. 7003924277
Petrobras Contracting Charting and operation services of FPSO Type Floating Production Unit, and Maritime Hospitality Services, as specified in this document and its amendments. July 03, 2023 | 12:00 PM Petronect Code No. 7003888184
Petrobras Contracting Drilling services for onshore oil, gas, and water wells, with availability of up to three rigs with drilling capacity for up to 4,000 meters. January 06, 2023 |

12:00 PM

Petronect Code No. 7003969131
Petrobras Contracting Pool Helicopter chartering at the Southeast Santos Basin January 13, 2023

12:00 PM

Petronect Code No. 7003975241
Petrobras Contracting Chartering of RV – RESEARCH VESSEL January 20, 2023 |

05:00 PM

Petronect Code No. 7003974872
Petrobras Contracting EPCI of the Revitalization Project of the Pipeline Framework of the Campos Basin January 23, 2023 |

12:00 PM

Petronect Code

7003899228

Petrobras Contracting Chartering of one Maintenance and Safety Unit

“UMS” (Nova 05)

January 12, 2023 |

12:00 PM

Petronect Code

7003977205

Public Consultations and Hearings (ANP) Obtain contributions on the Regulatory Impact Analysis Report (RIA), about the amendment to ANP Resolution No. 871, of March 30, 2022, which regulates local content reports, corresponding to the Quarterly Expense Report (RGT) and the Local Content Report (RCL), to be sent to the ANP in oil and natural gas exploration and production contracts. January 12, 2023 No. 25/2022
Public Consultations and Hearings (ANP) Obtain contributions to the draft agreement regarding the settlement of a dispute involving the collection of royalties and special participation in the Jubarte field, due to failure to update the true boiling point curve of the current by Petróleo Brasileiro S.A. February 03, 2023 No. 27/2022
Public Consultations and Hearings (ANP) Obtain contributions to regulatory matters that concern economic agents, consumers or users of goods and services of the oil, natural gas and biofuels industry. February 20, 2023 No. 28/2022
   
Contributions (ANEEL) Obtain contributions to amend Submodules 1.1 “Adherence to CCEE”, 1.2 “Agents Registration”, 1.4 “Service”, 1.5 “CCEE Disconnection”, 1.6 “Retail Commercialization”, 2.1 “Collection and Adjustment of Measurement Data”, 5. 1 “Accounting and Recalculation” and 6.2 “Notification and Management of Payment of Penalties and Fines” of the Trading Procedures, in order to adapt them to Normative Resolution No. 1,014, of April 12th 2022, and other improvements.   No. 019/2022
Public Consultations and Hearings (ANEEL) To obtain contributions for the improvement of draft Normative Resolutions, waiving the Regulatory Impact Analysis, in order to adapt the regulations applicable to distributed micro and mini generation, under the provisions established in Law No. 14,300, of January 6, 2022, and in art. 1 of Law No. 14,120, of March 1, 2021.        December 19, 2022 No. 51/2022
 
Public Consultations (MME) Contributions to the draft Normative Ordinance containing supplementary rules and procedures related to the Assignment of Use for Consideration for the operation of an offshore power plant within the frameworks of independent energy production or self-production, as provided for in Decree No. 10,946, of January 25, 2022. October 11, 2022 No. 134/2022
 
Public Consultations (MME) Obtain contributions for analysis of data and eligibility of assets to be used in the 2023 Periodic Review of the Annual Revenue Allowed (“RAP”) for agreements of tendered and not tendered Transmission Companies. January 16, 2023 No. 022/2022
Public Consultations (MME) Obtain contributions for the improvement of the TR21-40 activity of ANEEL’s Regulatory Agenda 2022/2023, which provides for the improvement of the quality regulation associated with Alternating Current Transmission Functions (“FT”). January 20, 2023

 

No. 023/2022
Public Consultations (MME) Obtain contributions on the improvement of the regulation associated with the contracting of the use of the transmission system. February 08, 2023 No. 024/2022
Public Consultations (MME) Obtain contributions for the improvement of the regulatory revision of incentivized sources in the Energy Efficiency Program (“PEE”) regulated by ANEEL January 31, 2023 No. 025/2022
Public Consultations (MME) Obtain contributions to broaden studies already carried out with collection of information about the Regulatory Impact Assessment of procedures for determining the operating capacity of power transmission facilities. January 18, 2023 No. 026/2022
Public Consultations (MME) Obtain contributions for the amendment of Subsections 3.2 “Regulated Environment Contracts”, 3.3 “Seasonalization and Physical Assurance Seasonalization Review” and 3.8 “Surplus Sale Mechanism” of Trading Procedures, aiming to adapt such topics to the Power Trading Rules, version 2023, among other improvements January 20, 2023 No. 027/2022
Public Consultations (MME) Obtain contributions for the improvement of energy balance data for calculation of energy losses, with consequent approval of non-technical losses on the measured low-voltage market February 03, 2023 No. 028/2022
Public Consultations (ANEEL) Obtain contributions regarding the Regulatory Impact Analysis (“AIR”) report that provides for access to the landscape of transmission and expansion for wind and photovoltaic generators. January 06, 2023  CP No. 052/2022
Public Consultations (ANEEL) Obtain contributions to improve the Draft Notice and Annexes of Auction No. 1/2023-ANEEL (Transmission Auction).; January 16, 2023  CP No. 053/2022
Public Consultations (ANEEL) Obtain contributions to improve the draft of Subsection 2.10, which addresses the minimum technical requirements for connection to transmission facilities (Requirements). January 16, 2023  CP No. 054/2022
Public Consultations (ANEEL) Obtain contributions to improve the proposal for the Energy Development Account Annual Budget (“CDE”) of 2023. January 27, 2023  CP No. 063/2022
Public Consultations (ANEEL) Obtain contributions on the AIR Report of the ANEEL Organization Standard Revision No. 40/2013. January 30, 2023  CP No. 64/2022
 
Public Hearings (ANEEL) Obtain contributions to improve the proposal for the Annual Budget of the Energy Development Fund (“CDE”) of 2023. January 09, 2022 AP No. 020/2022
 
Public Consultations (MME) Public Consultation to receive contributions to the Three-Year Work Plan for the National Hydrogen Program (2023-2025), which contains proposed actions for reinforcing scientific-technological bases; human resource training; energy planning; legal and regulatory framework; market opening, growth and competitiveness. January 30, 2023 No. 147/2022
Public Consultations (MME) Public consultation to collect contributions to the following reports: “Methodology for Quantifying Production and Capacity Ballast Requirements,” “Reference Methodology for Quantifying the Contribution of Supply: Production and Capacity Ballast” and “Supply Limit Shortfall and Mechanism for Exposure Coverage.” March 14, 2023 No. 146/2022
Public Consultations (MME) Public Consultation to receive contributions regarding the provision of ancillary services in SIN as well as guidelines to be followed in ongoing sectorial initiatives on the topic. February 06, 2023 No. 145/2022

 

** 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.

 

 

WHAT’S NEXT

July, 2023– Auction for Contracting Reserve Capacity
To be carried out by ANEEL.
August, 2023 – New Energy Auctions “A-4 “and “A-6”
To be carried out by ANEEL.
October, 2023– Auction for Supply of Isolated Systems
To be carried out by ANEEL.
November/2023– Auction for Contracting Reserve Capacity
To be carried out by ANEEL.
December, 2023 – Existing Energy Auctions A-1 and A-2″
To be carried out by ANEEL.

July, 2024– Auction for Contracting Reserve Capacity
To be carried out by ANEEL.

August, 2024 – New Energy Auctions “A-4 “and “A-6”
To be carried out by ANEEL.

October, 2024– Auction for Supply of Isolated Systems
To be carried out by ANEEL.
November/2024– Auction for Contracting Reserve Capacity
To be carried out by ANEEL.

December, 2024 – Existing Energy Auctions A-1 and A-2″
To be carried out by ANEEL.

July, 2025 – Auction for Contracting Reserve Capacity
To be carried out by ANEEL.

August, 2025 – New Energy Auctions “A-4 “and “A-6”
To be carried out by ANEEL.

October, 2025– Auction for Supply of Isolated Systems
To be carried out by ANEEL.

November, 2025– Auction for Contracting Reserve Capacity
To be carried out by ANEEL.

December, 2025 – Existing Energy Auctions A-1 and A-2″
To be carried out by ANEEL.

 


Related Areas

Share