The Chamber of Deputies approved the legal framework for offshore wind farms, an important step forward for the development of projects of this type in the country. However, the inclusion of amendments not related to the main theme of the text raised concerns and generated complaints in the sector. Bill 11,247/2018 received 403 votes in favor and 16 against. The text now goes to the Senate for a vote. According to the approved opinion of deputy Zé Vitor (PL-MG), the Executive Branch will be responsible for defining the areas subject to the installation of generating equipment. The process will involve the harmonization of public policies from bodies such as Energy and Environment, aiming to avoid or mitigate potential conflicts in the use of these areas.
The generation of energy in offshore wind installations will depend on authorization or concession and will be prohibited in certain sectors, including: blocks tendered under the concession, onerous assignment or oil production sharing regime; sea, river, lake or air navigation routes; areas protected by environmental legislation; areas listed as cultural and natural landscapes in the country’s tourist sites; areas reserved for carrying out exercises by the Armed Forces; and areas designated as authorization terms for sustainable use in the territorial sea. In the case of blocks for oil exploration, the operating oil company will have preference to receive the grant, and must be heard in advance and demonstrate whether there is incompatibility between the activities (electricity with oil exploration).
The transfer of areas for offshore energy generation may occur in two different ways. In the Permanent Offer modality, the public authorities will define areas for exploration based on requests from interested parties, resulting in the issuance of authorizations. In the Planned Offer, which depends on bidding, it will be up to the granting authority to carry out environmental studies necessary to define and delimit the sectors that will be the subject of the bidding.
CONTRACTING COAL THERMAL PLANTS
Rapporteur Zé Vitor included an amendment in the text that determines the obligation to contract coal-fired thermoelectric plants in capacity reserve auctions until 2050. This reserve aims to anticipate contracts to meet future demand and avoid rationing or lack of energy. Those thermoelectric plants with current contracts that will end by December 2028 will also be included in the reserve, which should especially benefit projects in the southern region of the country.
The final version of the text approved by the Chamber also promotes several changes to the Eletrobrás sales law. These changes include reducing the contracting of energy from natural gas thermoelectric plants associated with the sale of the state-owned company, while increasing the contracting of reserve energy generated from mineral coal.
The Eletrobrás privatization law established that the federal government should contract a total of 8 thousand MW of natural gas thermoelectric plants from 2026 to 2030, in the North, Northeast, Center-West and Southeast regions, as long as they come from new generating units in capitals and municipalities where there is no natural gas supply. The text proposed by Zé Vitor reduces this total to 4,250 MW.
REACTION FROM THE ELECTRIC SECTOR AND INDUSTRY
The inclusion of these measures generated strong reactions from the electricity sector. The Brazilian Association of Large Industrial Energy Consumers and Free Consumers issued a note, strongly criticizing the approved text: “Once again, consumers lose after an inexplicable decision by the Chamber of Deputies, which will force Brazilian society to bear a bitter bill: R$40 billion per year to generate coal plants, extend subsidies for sources that do not need them and force the purchase of expensive, polluting and unnecessary thermal generation for the system. And so, the electricity sector is increasingly moving away from its potential to offer clean, cheap and safe energy for the comfort of families and for the recovery of industrial production and the country’s economy.”
The Federation of Industries of Rio de Janeiro (FIRJAN) recognized the efforts to implement the specific regulatory framework for the offshore wind sector. However, says the federation, “it is imperative to emphasize that the proposed regulation must not carry unnecessary burdens on the economy, especially on end consumers”. The entity also adds that “as proposed, PL 11,247/2018 burdens the economy as a whole, to fund projects that have nothing to do with offshore wind”.
Brazil Energy Insight 
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