(Reuters) – The bill that regulates offshore wind power generation in Brazil advanced in the Senate on Tuesday with approval in the Infrastructure Committee, with a vote scheduled for the plenary session of the House on Wednesday.
Bill 576/2021, which is on the voting agenda, has been heavily criticized by the electricity sector due to the inclusion of a series of “riders” — issues not directly related to the central subject of the measure — that extend the generation of polluting sources, such as coal, and increase costs for energy consumers.
The main criticisms are focused on the additional benefits and deadlines for coal-fired plants, natural gas and small hydroelectric plants (PCHs), which tend to worsen the scenario of oversupply of electricity in Brazil and increase the costs embedded in the electricity bill.
According to calculations by the consultancy PSR, the amendments will impose around 440 billion reais in costs on energy consumers by 2050, or an annual expense of 17.5 billion reais, with an impact of 7.5% on energy bills.
An increase of 25% in annual greenhouse gas emissions from the Brazilian electricity sector is also estimated with the contracts provided for in the bill.
Other agents, however, came out in defense of the approval of the PL even with the amendments, highlighting their importance for energy security and emissions reduction.
The Brazilian Oil and Gas Institute (IBP), which represents companies that are also important players in the global offshore wind sector, stated that the regulatory framework is a “key milestone” to leverage this market, bring investment to Brazil and generate new jobs in the new low-carbon economy.
“If the Bill is not approved in 2024, Brazil runs the risk of delaying the organization of the auction, postponing the start of almost 100 projects in the study and licensing phase at Ibama, the attraction of capital and even losing these investments to markets that are at a more advanced regulatory stage”, said the IBP, in a note
Brazil Energy Insight 
Leave a comment