Newsletters

Energy and natural Resources Newsletter | No. 15 – October 2023

November 24th, 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

ANP holds workshop aiming to simplify compliance with the minimum exploratory program

On October 09 and 10, 2023, the Brazilian National Agency of Petroleum, Natural Gas and Biofuels (“ANP”) held a workshop regarding compliance with the minimum exploratory program outside the concession area.

The purpose of the event was to discuss the possibility of fulfilling the mandatory activities of the minimum exploratory program (“PEM”) outside the granted area.

The ANP claims that, rather than applying a fine due to the non-compliance with the program, it would be more beneficial to ensure that these activities be effectively executed, given their potential to generate jobs and income, to spread knowledge on Brazilian sedimentary basins and to enable the discovery of new deposits. As a result, the ANP conducted a Regulatory Impact Analysis (AIR) to study methods to simulate exploratory activities. The analysis concluded that there was a need to ease and clarify rules that address the possibility of compliance with the PEM outside the concession area.

The workshop and further discussions planned in the coming months aim to involve the market in dialogues regarding use and applicability criteria and requirements for the PEM to be complied with outside the concession area. Once these criteria are consolidated in a draft resolution, the text will be subjected to public consultation and hearing.

Click here to access the ANP’s release.

ANP publishes full version of the 2023 Oil, Natural Gas and Biofuels Statistical Yearbook

On October 16, 2023, the ANP released the full digital version of the “Oil, Natural Gas and Biofuels Statistical Yearbook 2023”, which consolidates Brazilian data and provides an international overview of the sector in 2022.

The yearbook is divided into six sections:

International Overview
The Brazilian Oil and Natural Gas Industry
Trade
Biofuels
Bidding blocks
ANP resolutions

The yearbook also includes a reading guide, notes, glossary, list of economic agents and supplementary information.

Click here to access the ANP’s release.

Brazilian Federal Revenue Office confirms possibility of using time chartering in Repetro-Sped

The Brazilian Federal Revenue Office (“RFB”) has confirmed that platforms and vessels under time chartering can be submitted to the Repetro-SPED system.

In this regard, we highlight the recent amendment of the Repetro-Sped Manual on October 17, 2023, as well as Answer to Inquiry No. 9/2023, published in the RFB Service Bulletin of October 18, 2023. This answer to inquiry is binding to tax authorities within the scope of the RFB.

The matter was previously the center of a controversy, due to a more restrictive interpretation that only bareboat charter contracts could be included in the Repetro-Sped system, which would refrain time charter contracts from benefiting from this system. As a result, import taxes could be collected from platforms and vessels under the time chartering contract. The RFB dismissed such restrictive interpretation and expressly confirmed that time chartering contracts were eligible for the Repetro-Sped system.

Click here to access the RFB’s release.

Five blocks will be available in 2nd Cycle of Open Acreage Offering

On October 16, 2023, the Special Bidding Commission (“CEL”) of the Production Sharing Open Acreage (“OPP”) announced the blocks that will be part of the public bid session of the 2nd cycle of the OPP.

According to the ANP, the five blocks below received expressions of interest from the bidders:

Cruzeiro do Sul
Esmeralda
Jade
Tupinambá
Turmalina

The public bid session will only take place on December 13, 2023.

The last qualified company to participate in the 2nd Cycle of the OPP was also announced: Petronas Petróleo Brasil Ltda. The company joins five others whose qualifications had already been approved by CEL: BP Energy do Brasil Ltda., Chevron Brasil Óleo e Gás Ltda., QatarEnergy Brasil Ltda., Shell Brasil Petróleo Ltda. and TotalEnergies EP Brasil Ltda.

The six qualified bidders can submit by November 08, 2023, the additional expressions of interest and guarantee offerings for the blocks announced by the ANP.

Click here to access the ANP’s release.

33 blocks and 1 marginal accumulation area available in 4th Cycle of Open Acreage of Concession

On October 16, 2023, the CEL of the Concession Open Acreage (“OPC”) announced the following as available in the 4th Cycle of the OPC:

The marginal accumulation area of Japiim; and
33 sectors with exploratory blocks, located across nine sedimentary basins.

All 87 bidders enrolled may present expressions of interest by November 08, 2023 accompanied by offering guarantees for these sectors, which will be offered at the public session of the 4th OPC Cycle, to be held on December 13, 2023.

Click here to access the ANP’s release.

ANP reviews and consolidates 74 ordinances and resolutions into 30 normative acts

On October 09, 2023, the ANP published in the Federal Official Gazette of Brazil a set of 30 resolutions that consolidated and simplified around 111 normative acts.

The review of the 74 ordinances and resolutions and their consolidation into 30 new normative acts are within the scope of Decree No 10,139, of November 28, 2019 and of ANP Ordinances No. 232, of August 6, 2020, and No 141, of September 02, 2022, which provide for the review and consolidation procedures of normative acts.

Below, we list the new resolutions that were published, and the resolutions and ordinances that have been amended or repealed.

New	Amended/Repealed
Resolution 931/2023	I – ANP Ordinance No. 47, of March 24, 1999 II – ANP Resolution No. 15, of March 16, 2011
Resolution 932/2023	I – ANP Ordinance No. 242, of October 18, 2000
Resolution 933/2023	I – ANP Resolution No. 2, of January 14, 2005 II – ANP Resolution No. 39, of August 04, 2011
Resolution 934/2023	ANP Resolution No. 4, of September 01, 2006
Resolution 935/2023	I – ANP Resolution No. 17, of July 26, 2006 II – ANP Resolution No. 29, of September 29, 2008 III – ANP Resolution No. 34, of October 22, 2009 IV – ANP Resolution No. 22, of July 02, 2010 V – ANP Resolution No. 51, of September 15, 2014
Resolution 936/2023	V – ANP Resolution No. 18, of July 26, 2006
Resolution 937/2023	I – ANP Resolution No. 24, of September 06, 2006 II – ANP Resolution No. 768, of January 17, 2019
Resolution 938/2023	I – ANP Resolution No. 8, of March 06, 2007 II – ANP Resolution No. 25, of August 15, 2007 III – ANP Resolution No. 15, of June 18, 2009 IV – ANP Resolution No. 20, of April 14, 2011 V – ANP Resolution No. 7, of January 19, 2015
Resolution 939/2023	I – ANP Resolution No. 12, of March 21, 2007 II – ANP Resolution No. 14, of April 18, 2007 III – ANP Resolution No. 20, of June 27, 2007 IV – ANP Resolution No. 28, of September 27, 2007 V – ANP Resolution No. 19, of March 31, 2011
Resolution 940/2023	I – ANP Resolution No. 43, of December 24, 2008 II – ANP Resolution No. 31, of October 01, 2012
Resolution 941/2023	I – ANP Resolution No. 18, of June 18, 2009 II – ANP Resolution No. 1, of January 12, 2011 III – ANP Resolution No. 45, of September 09, 2011
Resolution 942/2023	V – ANP Resolution No. 19, of June 18, 2009
Resolution 943/2023	V – ANP Resolution No. 20, of June 18, 2009
Resolution 944/2023	I – ANP Ordinance No. 43, of December 22, 2009 II – ANP Resolution No. 66, of December 09, 2011 ANP Ordinance No. 27, of September 13, 2012 ANP Ordinance No. 855, of October 08, 2021 Article 30 of ANP Resolution No. 790, of June 10, 2019
Resolution 945/2023	ANP Resolution No. 48, of December 15, 2010
Resolution 946/2023	I – ANP Resolution No. 67, of December 09, 2011 I – ANP Resolution No. 5, of January 24, 2013 III – ANP Resolution No. 29, of July 31, 2013 IV – ANP Resolution No. 719, of February 21, 2018
Resolution 947/2023	ANP Resolution No. 70, of December 20, 2011
Resolution 948/2023	I – ANP Resolution No. 41, of November 05, 2013 II – ANP Resolution No. 57, of October 17, 2014 III – ANP Resolution No. 9, of March 15, 2016 IV – ANP Resolution No. 765, of December 20, 2018 V – ANP Resolution No. 858, of November 05, 2021
Resolution 949/2023	I – ANP Resolution No. 45, of November 22, 2013 II – ANP Resolution No. 8, of February 05, 2014
Resolution 950/2023	I – ANP Resolution No. 58, of October 17, 2014 II – ANP Resolution No. 4, of January 15, 2015 III – ANP Resolution No. 36, of August 26, 2015 IV – ANP Resolution No. 47, of November 12, 2015 V – ANP Resolution No. 745, of August 30, 2018 VI – ANP Resolution No. 844, of May 31, 2021 VII – articles 4 and 5 of ANP Resolution No. 9, of March 14, 2016 VIII – article 35 of ANP Resolution No. 790, of June 10, 2019 IX – article 35 of ANP Resolution No. 795, of July 05, 2019 X – article 12 of ANP Resolution No. 839, of March 01, 2021 XI – article 3 of ANP Resolution No. 858, of November 05, 2021
Resolution 951/2023	I – ANP Resolution No. 5, of January 19, 2015 II – ANP Resolution No. 22, of April 17, 2015
Resolution 952/2023	ANP Resolution No. 6, of January 19, 2015
Resolution 953/2023	I – ANP Resolution No. 26, of May 27, 2015 II – ANP Resolution No. 40, of October 09, 2015
Resolution 954/2023	ANP Resolution No. 53, of December 02, 2015
Resolution 955/2023	ANP Resolution No. 53, of December 02, 2015
Resolution 956/2023	I – ANP Resolution No. 10, of March 14, 2016 II – ANP Resolution No. 746, of August 30, 2018
Resolution 957/2023	I – ANP Resolution No. 49, of November 30, 2016 II – ANP Resolution No. 679, of May 25, 2017 III – ANP Resolution No. 695, of August 28, 2017 IV – ANP Resolution No. 709, of November 14, 2017 V – ANP Resolution No. 797, of July 19, 2019
Resolution 958/2023	I – ANP Resolution No. 51, of November 30, 2016 II – ANP Resolution No. 662, of January 12, 2017 III – article 19 of ANP Resolution No. 825, of August 28, 2020
Resolution 959/2023	ANP Resolution No. 777, of April 05, 2019
Resolution 960/2023	ANP Resolution No. 35, of December 02, 2005 II – ANP Resolution No. 30, of October 26, 2006 III – ANP Resolution No. 43, of August 18, 2011 IV – ANP Resolution No. 784, of April 26, 2019

The wording of these normative acts was adjusted in relation to legislative technique, de-bureaucratization and updates, without changes in merit. Nevertheless, the ANP established a 6-month period between the publication of the law and its entry into force, which means the new regulations will not enter into force until April 10, 2024. During this period, the market can suggest the need for any potential changes in the published text.

Click here to access the ANP’s release.

ANP clarifies authorization process for ethanol production

On October 17, 2023, the ANP held the Technical Workshop on Ethanol, which involved the presentation of authorization procedures for ethanol production and the clarification of questions from attendees.

The workshop focused on ANP Resolution No. 734/2018, which regulates authorizations for biofuel production activities and for the operation of biofuel production facilities. According to the ANP, the main goal of the event was to speed up the authorization process by enlightening economic agents regarding the procedures.

Click here to access the ANP’s release.

Public consultation on regulations for biofuel certification approved

On October 26, 2023, the ANP Board of Directors approved the opening of public consultation and hearing regarding the review of ANP Resolution 758, which provides for procedures aimed at the efficient certification of biofuels and accreditation of oil companies, within the scope of the National Biofuel Policy (RenovaBio).

Among other guidelines, the regulations bring eligibility rules for biomass producers to be part of RenovaBio and an annex including the RenovaCalc technical regulation (calculator that quantifies greenhouse gas emissions from biofuel from the agricultural phase to its use in transport).

According to the ANP, the review aims to implement regulatory improvements deemed necessary after a regulatory impact analysis, among which we highlight:

Inclusion of general requirements on the chain of custody (process through which information on raw materials, intermediate products and end products is transferred, monitored and controlled as they progress through each stage of the supply chain), to be detailed in a technical report.
Review of sanctions and penalties on biofuel companies and producers.
Review of requirements for accreditation of inspectors and qualification of audit staff.
Review of data to be inputed into RenovaCalc and deletion of information from Annex 1 of the resolution.
Review of rules for biofuel production units in operation.

Click here to access the ANP’s release.

Pilot project to evaluate quality of biomethane and natural gas mixture for pipeline gas injection approved

On October 26, 2023, the Collegiate Board of Directors of the ANP granted special authorization for GNR Fortaleza Valorização do Biogás Ltda to advance with a 6-month pilot project aimed at evaluating the quality of the biomethane and natural gas mixture at the premises of the gas distributor of the state of Ceará (Cegás).

Due to the high concentration of nitrogen at the sanitary landfill, the “Wobbe Index” and “Superior Calorific Value” of the pure biomethane at the exit of the GNR facilities exceed the limits established by the ANP in Resolution No. 886/2022. In this regard, the proposal approved by the ANP involves quality control on Cegás premises after mixing biomethane with natural gas, in order to meet ANP requirements. End consumers will receive this mixture with all specified values, while the ANP will receive monthly quality data for pure biomethane, as well as for natural gas and biomethane mixture.

The ANP stated that this authorization aims to expand technical studies on the biomethane and natural gas mixture in order stimulate production and use of biomethane injection in the pipeline network. At the end of the pilot project, the technical data is expected to demonstrate that the products resulting from the operational arrangement between GNR Fortaleza and Cegás are safe from the perspective of quality control. In addition, such data can contribute for future regulatory improvements.

Click here to access the ANP’s release.

Judicial decision prevents “fuel delivery” in cities of Minas Gerais

On October 27, 2023, the ANP informed that the 1st Civil and Criminal Court of the Judicial Sub-district of Uberlândia-MG issued a preliminary injunction to ban the resale of fuels outside the commercial establishment (“fuel delivery”) and the sale of fuels from other suppliers in gas stations.

We highlight that the decision is effective within the territorial jurisdiction of the Federal Court of the Sub-section of Uberlandia/MG, which covers the following cities: Araguari, Araporã, Cascalho Rico, Douradoquara, Estrela do Sul, Grupiara, Indianópolis, Iraí de Minas, Monte Alegre de Minas, Monte Carmelo, Nova Ponte, Romaria, Tupaciguara and Uberlândia.

The ANP stated that the judicial decision revoked the following provisions from ANP Resolution No. 41/2013, which had been amended by ANP Resolution No. 858/2021:

Article 31-A, which authorizes “delivery” of gasoline and ethanol; and
Paragraph 2 of article 18, which authorizes “banner” stations linked to a specific distributor to sell fuels from other suppliers, provided that consumers are informed of the source in all the gas pumps.

Due to this decision, the ANP has stated it will not grant future authorizations for the resale of automotive fuels outside the authorized establishment in the 14 affected cities. The ANP has emphasized the preliminary nature of the decision, which can be reformed, and will be the object of an appeal by the ANP.

Click here to access the ANP’s release.

NEWS

ANP releases consolidated data of oil and gas production in August

On October 03, 2023, the ANP released the Monthly Bulletin of Oil and Natural Gas Production, which brings the consolidated data of Brazilian production throughout August 2023.

According to the ANP, production in Brazil (oil + natural gas) amounted to 4.392 million barrels of oil equivalent oil per day (MMboe/d).

With regard to oil, 3.462 million barrels per day (MMbbl/d) were extracted:

a reduction of 1.4% compared to July 2023; and
an increase of 12.2% compared to August 2022.

The natural gas production in August amounted to 147.86 million cubic meters per day (MMm³/d):

a reduction of 4.0% compared to July 2023; and
an increase of 5.6% compared to August 2022.

Regarding the pre-salt area, total production (oil + natural gas) in August amounted to 3.282 million barrels of oil equivalent per day (boe/d), which corresponds to 74.7% of Brazilian production. These figures indicate a reduction of 2.3% compared to July 2023, but a 10.6% increase compared to August 2022. In total, production in August 2023 amounted to 2.591 million barrels per day (bbl/d) of oil and 109.73 million cubic meters per day (m³/d) of natural gas, from a total of 141 wells.

Click here to access the ANP’s release.

Natural gas: ANP discusses gas pipeline transportation matters

On August 03, 2023, the ANP held a public hearing on the streamlining of the process of offering and contracting capacity in existing gas pipelines, as well as a public call to estimate demand and contract the corresponding capacity in gas transport pipelines to be built or expanded.

The ANP’s proposed draft resolution amends specific provisions of ANP Resolutions No. 11, of March 16, 2016, and No. 51, of December 26, 2013, which regulate, respectively, the offering and contracting processes of transport capacity and natural gas loading.

In addition to simplifying these two processes, the ANP also seeks to increase its effectiveness and agility in line with the market’s demand, as well as to enable the entry of new agents and stimulate competition. The amendment also aims to bring the ANP regulation into line with Law No. 14,134 of April 08, 2021 (New Gas Law) – which gave new meaning to the concept of a public call, among other provisions –, as well as with the guidelines of CNPE No. 3/2022.

The draft was submitted to Public Consultation No. 12/2023, which received a total of 136 contributions. Suggestions received at the public consultation and hearing will be evaluated by the technical department of the ANP and included in the final draft, if approved. The final text will undergo analysis by the ANP and the Brazilian Federal Attorney’s Office and must be approved by the collegiate board of the ANP in order to be published.

Click here to access the ANP’s release.

ANP plans to hire 20 FPSOs and invest USD 90 billion in E&P activities

On October 24, 2023, at the Offshore Technology Conference, ANP general officer Rodolfo Saboia announced plans to invest USD 90 billion in the exploration and production of oil and gas throughout the next 5 years, and that 20 new platforms are expected to initiate operations in Brazil by 2027.

Reportedly, Petrobras plans to acquire 11 new FPSOs (Floating Production Storage and Offloading) within the same period. This means that, combined, all operators in Brazil will contract a volume of vessels almost equivalent to that of Petrobras, within three years.

Click here to access the release.

Power

HIGHLIGHTS

Federal Government outlines priority projects under Brazil’s Cost Reduction program

On October 20, 2023, Brazil’s Cost Reduction Working Group, which integrates the National Council for Industrial Development (“CNDI”), outlined 17 priority projects that will be implemented in the next 24 months, among which we highlight the following:

cost reduction for financing infrastructure projects;
rationalization of sectoral charges; and
mapping of international policies to foster energy transition.

In addition, monitoring of the implementation of 24 other ongoing projects was established, among which can be highlighted the projects: (i) to improve the regulatory framework of the power sector, ensuring the expansion of the free market; and (ii) the approval and regulation of a draft bill establishing the carbon market in Brazil.

Read the article about Brazil’s Cost Reduction Program in full

PDL amending regulations on locational signal is approved by Senate

On October 24, 2023, the Infrastructure Commission of the Brazilian Federal Senate approved the Draft Legislative Decree (“PDL”) No. 365/2022, aimed at suspending Brazilian National Electricity Regulatory Agency (“ANEEL”) Normative Resolution ( No. 1,024/2022 and Normative Resolution No. 1,041/2022.

These resolutions had previously changed the methods for calculating the TUST and TUSD tariffs (Transmission System Use Tariff and Distribution System Use Tariff, respectively) and, according to the justification for the project, these methods would increase the use of the transmission lines in the Northeast region of Brazil from 2028 onwards.

The resolutions under discussion increase the so-called “locational signal”, which is a factor that integrates tariffs and considers the distance between consumers and power plants in order to minimize transmission investments.

PDL No. 365/2022 advanced to the Committee on Constitution, Justice and Citizenship, and is currently awaiting the appointment of a rapporteur .

Read PLD No. 365/2022 in full

Read the article in full

ONS publishes new version of the “blackout” Disturbance Analysis Report

On October 18, 2023, the National Electric System Operator (“ONS”) released the new version of the Disturbance Analysis Report (“RAP”) regarding the interruption in the power supply of more than 23,000 MW in 25 states of Brazil and the Federal District, which took place on August 15, 2023.

The RAP provided details regarding this incident and confirmed that the root cause of the blackout was the automatic shutdown of LT 500 kV Quixadá – Fortaleza II, only in the Quixadá terminal.

In addition, the document established measures – which must be implemented by October 2024 – to be taken by certain agents as a means to avoid similar incidents in the future.

Read the article in full

Read the RAP in full

NEWS

ANEEL opens public consultation on CCEE’s Power Trading Rules for 2024

On October 04, 2023, Public Consultation Notice No. 37/2023 was published, with the objective of obtaining contributions for the improvement of the proposal regarding the 2024 version of Electric Energy Trading Chamber’s (“CCEE”) Power Trading Rules.

The public consultation aims to address prominent topics to be incorporated into the new versions of the CCEE’s Power Trading Rules, including:

Limitation of contract registrations to the average amount of 30 MW for suppliers classified as type 2.
Change in the energy allocation method, from the Free Contracting Environment (“ACL”) to the Regulated Contracting Environment (“ACR”), in line with a concept that is similar to the assignment of reserve energy, in which the additional energy allocation occurs only when there is a need to avoid chargeback.
Revision of the process of defining power quotas of the Programme of Incentives for Alternative Electricity Sources (“PROINFA”), which will now be automated.

Contributions must be sent by November 17, 2023.

Read the public consultation in full

Regulation for hiring independent audit firms published

On October 05, 2023, ANEEL published Normative Resolution No. 1,075/2023, which improved the existing regulation for hiring independent audit firms, by the ONS, to audit the input data of the Monthly Operation Program (“PMO”).

The regulation approved the creation of Sub-module 6.18 of the ONS Network Procedures, which provides for the auditing of the PMO input data and its revisions, the input data for the formation of the Marginal Operating Cost (“CMO”) on a semi-hourly basis, and the generation data gathered.

Read Resolution No. 1,075/2023 in full

CDE’s budget proposal approved for “Light for All” program

On October 10, 2023, the Ministry of Mines and Energy (“MME”) published Ordinance No. 750/2023, which approved the budget proposal for the Energy Development Account (“CDE”) of the 2024 National Program for Universalization of Access and Use of Electrical Energy (“Light for All”).

Read Ordinance No. 750/GM/MME in full

ANEEL approves public consultation on storage systems within Brazil’s power sector

On October 19, 2023, Public Consultation No. 39/2023 was established, whose object is to improve the Regulatory Impact Analysis Report (“AIR”) on the regulations for energy storage, including pumped storage hydropower.

In this public consultation, the following topics will be discussed:

adjustment of the regulation on power grid access for new storage technologies;
adjustment of the regulation on authorization grants for new energy storage solutions; and
evaluation of remuneration structure alternatives for energy storage systems.

In order to assist with the participation of interested parties, ANEEL released Technical Note No. 061/2023, accompanied by the corresponding regulatory impact analysis (“AIR”) and the studies on this topic. Interested parties can submit contributions until December 18, 2023.

Read Public Consultation No. 39/2023 in full.

Read the article in full.

ANEEL changes PRODIST technical requirements

On October 17, 2023, ANEEL published Normative Resolution No. 1,076, amending Annex III to Normative Resolution No. 956/2021, which is aimed at regulating the Electric Power Distribution Procedures in the National Electric System (“PRODIST”). PRODIST addresses connection to the electricity distribution system.

Below, we highlight the key updates regarding the new regulation:

Changes to the minimum support capacity of distributed microgeneration or minigeneration, with the exception of distributed microgeneration or minigeration from a thermal source (in this case, support capacity values can be varied).
Prohibition on the use of the “vector surge” anti-islanding protection function for distributed microgeneration and minigeration connected via electronic power converters.
Revokes items 13.1 and 27.1, which determined that, if the criteria established by the distributor were not in compliance with the ONS standards, the distributor and the ONS would have to establish these criteria jointly.

Read Normative Resolution No. 1,076/2023 in full

Ordinance establishes duties of MME’s General Ombudsman officer

On October 19, 2023, the MME published Ordinance No. 754/2023, which established the duties of the MME’s General Ombudsman officer, among them:

take action relating to ombudsman complaints;
foster communication with the National Data Protection Authority (“ANPD”);
ensure the protection of personal data of employees; and
take over further duties determined by the controller or established in supplementary regulations.

Read Ordinance No. 754/2023 in full

Renewable

HIGHLIGHTS

Trinity invests BRL 300 million in solar plants in the Northeast

On October 09, 2023, Trinity Energias Renováveis announced its expansion in the Northeast Region of Brazil by investing BRL 300 million in the implementation of 15 plants across 3 different states: Pernambuco, Ceará and Bahia.

Photovoltaic plants will be implemented in the cities of:

Trairi, Baturité, Senador Pompeu, Jaguaruana, Morada Nova and Várzea Alegre, in the state of Ceará.
Irecê and Morro do Chapéu, in the state of Bahia.
Sairé, Itaquitinga, Petrolândia and Petrolina, in the state of Pernambuco.

All units are expected to be finished by 2024.

Click here to access the ANP’s release.

Alexandre Silveira highlights partnership with BNDES for investments in energy transition

On October 25, 2023, the Minister of Mines and Energy, Alexandre Silveira, met with the President of the Brazilian National Bank for Economic and Social Development (BNDES), Aloizio Mercadante, to present projects developed by the Ministry of Mines and Energy (MME), and to seek partnerships in the areas of energy efficiency, energy transmission, decarbonization, green hydrogen and energy transition.

The MME Minister highlighted that the BNDES has the potential to be a major partner in accelerating the implementation of important energy transition projects, thus strengthening technical cooperation between the two authorities and stimulating potential financing and engagement from the private sector.

Click here to access the MME’s release.

Bill regulating the carbon market is approved by Senate

On October 04, 2023, the Brazilian Federal Senate approved Bill No. 412/2022 (“PL”), which regulates the carbon market in Brazil.

The Bill is aimed at fostering the reduction of greenhouse gas emissions through constituting the Brazilian Trading System of Greenhouse Gas Emissions (“SBCE”), which establishes annual greenhouse gas emission quotas distributed to operators.

According to the text approved by the Committee on the Environment, those agents that manage to reduce their own greenhouse gas emissions will be able to acquire credits and sell them to those who do not meet their greenhouse gas emission quotas. In addition, the SBCE will have to be adopted by legal entities and individuals that emit more than 10,000 tons of carbon dioxide equivalent (tCO2e) per year.

The approved text will advance to the House of Representatives for deliberation.

Read the PL in full

2023-2032 Strategic Map of the Industry is published

On October 20, 2023, the Brazilian National Confederation of Industry (“CNI”) published the 2023-2032 Strategic Map of the Industry, a document that establishes guidelines to be observed by Brazil over 10 years in order to achieve more productive, innovative, and sustainable industrialization.

The document addresses the main challenges, goals, and strategies, as well as guidelines for ensuring energy security, energy supply, and competitive prices.

To this end, the CNI outlined strategies such as: developing the regulatory and commercial model of the power sector; determining the regulations and timetable for the gradual cut on energy subsidies; and regulating the CDE’s expenditure.

See the map in full

NEWS

Secretary of the MME highlights Brazil’s strategy for hydrogen

On October 03, 2023, during a public hearing of the Special Committee on Energy transition and Green Hydrogen production of the Brazilian House of Representatives, the Secretary for Energy Transition and Planning of the MME, Thiago Barral, stated that Brazil has established a low-carbon emission hydrogen strategy based on three time frames.

In the coming years, the MME plans to:

expand the presence of low-carbon hydrogen pilot plants across all regions of Brazil;
establish Brazil as the most competitive hydrogen producer in the world; and
consolidate low-carbon hydrogen hubs in Brazil.

Regarding pilot plants, the secretary stated that “Brazil needs to show through concrete projects that the country can deliver on the hydrogen production potential that the world sees.” According to Barral, hydrogen laboratories that are spreading across Brazil are essential to reduce costs and benefit from Brazil’s capabilities in engineering, supply chains and logistics – especially the infrastructure that will support larger projects.

According to Barral, Brazil has the technical potential to produce 1.8 gigatons of hydrogen per year. Current projections also position Brazil as the country with the lowest cost of production.

Click here to access the MME’s release.

Alexandre Silveira announces BRL 500 billion investments in Brazilian fields where TotalEnergies has stakes

On October 12, 2023, the Minister of Mines and Energy, Alexandre Silveira, announced at a meeting held in Paris, France, that TotalEnergies will invest a total of BRL 500 billion by 2026 in energy projects in Brazil in the fields in which the company has stakes, including offshore wind, oil and gas research and exploration, as well as onshore wind and solar projects.

Click here to access the MME’s release.

Energy sector report to be published in 2024

On October 13, 2023, the minister of Mines and Energy, Alexandre Silveira, and the Executive Director of the International Energy Agency (“IEA”), Fatih Birol, announced that the Latin American IEA Energy Report will be published in 2024, in which Brazil is expected to occupy a prominent position due to the decarbonization measures of its national energy matrix.

Read the article in full

Piauí receives BRL 50 million for the development of a green hydrogen park

On October 14, 2023, the Government of the state of Piauí and Green Energy Park, a European company, signed a letter of intent, whose scope is to build a green hydrogen park in the municipality of Parnaíba, capable of producing 5 GW of green ammonia annually, with the potential to become the largest green hydrogen project in the world.

The initial investment amounts to EUR 10 billion and the construction works are expected to last two years, as of 2024.

Read the article in full

OPPORTUNITIES

TYPE	DESCRIPTION	CONTRIBUTION TERM	CODE / NOTES
Petrobras Contracting	Chartering and Operation Services of FPSO – Barracuda and Caratinga Revit	March 18, 2024 12:00 PM	7004050042
Petrobras Contracting	FPSO for SEAP- I – Chartering and operation services	January 15, 2024 12:00 PM	7004032918
Petrobras Contracting	FPSO for SEAP-II – Chartering and operation services	January 15, 2024 12:00 PM	7004032955
Petrobras Contracting	Charter of RSV Type Vessels and Specialized Technical Services	November 30, 2023 5:00 PM	7004116354
Petrobras Contracting	Charter of one or more vessels of type P5	December 08, 2023 12:00 PM	7004170272
Petrobras Contracting	EPC Deep Drainage of Plateau 19C and Gaslub ODB Interconnections	December 14, 2023 12:00 PM	7004185364
Public Consultation and Audience No.º 16/2023 (ANP)	Obtain contributions on the revision draft of ANP Resolution No. 758/2018, which deals with the procedures for accreditation of inspection firms and certification of biofuels within the scope of RenovaBio.	Nov. 03 to Dec. 18, 2023	Access here.
Public Consultations (ANEEL)	Improvement of the Regulatory Impact Analysis Report on the Regulations for the Energy Storage, including pumped storage hydropower.	December 18, 2023	CP No. 039/2023

** Please note that the deadlines in the table above are constantly changing, so the information mentioned above corresponds to deadlines published at the time of publication of this newsletter.

WHAT’S NEXT

	December/2023 – Existing Energy Auctions “A-1” and “A-2″ To be held by ANEEL.
	December 15, 2023 – Transmission Auction 002/ 2023 To be held by ANEEL. Access the auction web page.
	March/ 2024 – Transmission Auction 001/2024 To be held by ANEEL.
	July/2024 – Auction for Contracting Capacity Reserve To be held by ANEEL.
	August/2024 – New Energy Auctions “A-4” and “A-6” To be held by ANEEL.
	September/ 2024 – Transmission Auction 002/2024 To be held by ANEEL.
	October/2024 – Auction for the Supply of Isolated Systems To be held by ANEEL.
	November/2024 – Auction for Contracting Capacity Reserve To be held by ANEEL.
	December/2024 – Existing Energy Auctions “A-1” and “A-2″ To be held by ANEEL.
	July/2025 – Auction for Contracting Capacity Reserve To be held by ANEEL.
	March/2025 – Transmission Auction 001/2025 To be held by ANEEL.
	August/2025 – New Energy Auctions “A-4” and “A-6” To be held by ANEEL.
	September/2025 – Transmission Auction 002/2025 To be held by ANEEL.
	October/2025 – Auction for the Supply of Isolated Systems To be held by ANEEL.
	November/2025 – Auction for Contracting Capacity Reserve To be held by ANEEL.
	December/2025 – Existing Energy Auctions “A-1” and “A-2″ To be held by ANEEL.