On Thursday (12), the Senate approved the draft legal framework for the use of offshore wind power (in the open sea). The bill was approved with “riders” that benefit coal and natural gas thermoelectric plants. The text must now be submitted for presidential approval.
The majority of senators rejected, by 40 votes to 28, a highlight defended by the government to remove the article on “riders” from the proposal.
On Tuesday (10), the Infrastructure Services Committee approved the report by Senator Weverton Rocha (PDT-MA) on the changes made by the Chamber to the bill.
He maintained sections on the extension of contracts for coal and natural gas-fired thermoelectric plants, and contracts for generating small hydroelectric plants (PCHs) – which were included in the Chamber’s analysis and evaluated as “riders” in the text.
Furthermore, the senator initially removed sections on benefits for micro and mini distributed generation, but later reinstated this part in the proposal. He also made adjustments, according to him, to make offshore wind power viable.
The rapporteur’s intention in keeping the sections unrelated to the main topic of the proposal – the so-called “riders”, in legislative jargon – is to leave the final decision to the Executive Branch.
According to him, it is up to the Executive Branch to have the final say on strategic issues of the country’s energy matrices and, therefore, the government may veto sections that it does not consider pertinent. Any vetoes, however, are subject to analysis by the National Congress and may be overturned.
Senators criticize “riders”
Senators opposed to the “riders” highlighted, during the session, that the changes should have an impact and increase the electricity bill for consumers. According to the government leader in Congress, Senator Randolfe Rodrigues (PT-AP), the impact will be 7.5%. He indicated that Lula should veto part of the proposal and, if the veto is overturned, he could take the matter to court.
In the Committee, Senator Otto Alencar (PSD-BA), deputy leader of the government, presented a highlight (suggested change) to remove the riders from the text, but the proposal was rejected.
Otto reaffirmed, in the plenary, the polluting nature of coal-fired power plants and the advance of climate change. For him, the issue should be addressed in another proposal. On the other hand, Weverton, who is also deputy leader of the government, criticized the “rider” label given to articles in the project.
“The Executive Branch will be the one to discuss the numbers, which will say what is strategic or not. And what is not, it [will] define as public policy and move forward,” said the rapporteur.
Understand the proposal
The bill defines rules for the use of energy in offshore areas, defined as areas of the marine environment, located in inland waters under the jurisdiction of the Union, the territorial sea, the exclusive economic zone and the continental shelf.
According to the text, exploration will be carried out through a grant with authorization or concession. There will, however, be limitations on some areas. Projects cannot be carried out in certain areas, such as navigation routes, environmental protection areas, areas where the Armed Forces exercise, as well as tourist areas listed as cultural and natural landscapes.
Authored by then-Senator Jean Paul Prates (PT-RN), the proposal was approved by the Senate in August 2022. After analysis by the Chamber, it was approved in November of last year with amendments and, therefore, returned to the Upper House.
Brazil Energy Insight 
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