The Amazon Energies Program, launched by Federal Decree 11,648/23, aims to reduce the use of non-renewable sources in the energy production of the Amazon region. Another goal is to reduce the emission of greenhouse gases, prioritizing renewable energy sources in the energy matrix – especially in place of thermoelectric plants[1].

Although the energy  generated from renewable sources already represents approximately 80% of the national energy matrix, Brazil still seeks to expand these sources to achieve carbon neutrality. In this scenario, there is a need to replace the energy sources used in the so-called isolated systems.

As provided for in article 2, items II and II, of Federal Decree 7.246/10, isolated systems are electrical systems of public service of energy distribution that are not connected to the National Interconnected System (SIN) for technical or economic reasons.

The federal government estimates that there are 211 locations served by isolated systems located in six states of the Northern Region. In these locations, generation occurs, for the most part, through thermoelectric plants that use diesel oil as a source which emit about 2.3 million tons of carbon dioxide (CO2) per year.[2]

In addition, about R$ 12 billion per year are spent to supply the electricity needed to serve the isolated systems of the Legal Amazon.[3]

According to article 1 of Federal Decree 11.648/23, the Amazon Energies Program seeks to promote investment in actions and projects in isolated systems located in the Legal Amazon region[4] to:

  • reduce electricity generation from fossil fuels;
  • contribute to the quality and security of electricity supply; and
  • structurally reduce the expenses of the Fuel Consumption Account (CCC), defined in article 3 of Federal Law 12.111/09.[5]

The remote regions – small groups of consumers located in the Amazon Isolated System, far from municipal headquarters and characterized by the absence of economies of scale or density (article 1, item II, of Federal Decree 7,246/10) – will be served preferentially by the national universalization programs, as provided for in article 1, paragraph 2, of Federal Decree 11,648/23.

In addition, Article 3 of that decree sets out the guidelines for the program:

  • value the energy resources available in the Legal Amazon region, especially renewable ones;
  • promote energy efficiency and the reduce losses in the electrical energy supply;
  • enable the interconnection of isolated systems to the SIN, when technically, economically and socio-environmentally feasible;
  • promote the quality and transparency of data and information on electricity supply and fuel consumption within isolated systems;
  • promote technological innovation and improve the quality of electricity supply;
  • promote social engagement and participation in the planning and implementation of the actions of the Amazon Energies Program; and
  • articulate with other government programs to promote the integration of policies and actions in the locations served.

Article 5 of Federal Decree 11,648/23 also established the actions and projects eligible for the Amazon Energies Program, among which the following stand out:

  • interconnection of isolated systems to the SIN through electricity transmission or distribution networks;
  • installations of electrical energy generation assets from renewable sources or the use of low-carbon fuels, including biomass, liquid biofuels, biogas and energy use of waste;
  • network installations that integrate generation facilities and electric energy storage systems;
  • implementation of implementation of loss reduction, energy efficiency and demand response projects or programs;; and
  • energy importation, provided that there is a reduction in greenhouse gas emissions and expenses with the CCC.

Implementation will mainly occur through:

  • auctions and transmission authorizations for the interconnection of isolated systems to the SIN;
  • auctions for contracting supply solutions to serve the isolated systems;
  • subrogation in the reimbursement of the CCC; and
  • Program for Structural Reduction of Energy Generation Costs in the Legal Amazon and Navigability of the Madeira River and Tocantins River – Pro-Legal Amazon (art. 4 of Federal Decree 11.648/23).

The National Energy Policy Council (CNPE) will be responsible for establishing the goals for compliance with the program in relation to the amount of greenhouse gas emissions for 2030 and, ten years in advance, for 2035.

Federal Decree 11,648/23, therefore, is extremely important for measures aimed at actions that enable the energy transition in the country. The new standard adapts this transition to the existing generation characteristics in Brazil by connecting the Amazon region to the SIN and expanding the supply of electricity from renewable sources, including in areas where non-renewable sources still predominate.

 

[1] Website of the Ministry of Mines and Energy: "Decree establishing the Energies of the Amazon program is signed by President Lula

[2] Ditto.

[3] Ditto.

[4] The definition of Legal Amazon is that provided for in article 2 of Federal Law 5.173/66: "The Amazon, for the purposes of this law, covers the region comprised by the States of Acre, Pará and Amazonas, by the Federal Territories of Amapá, Roraima and Rondônia, and also by the areas of the State of Mato Grosso north of the parallel of 16º,  of the State of Goiás north of the parallel of 13º and of the State of Maranhão to the west of the meridian of 44º."

[5] Art. 3 of Federal Law 12.111/09: "The Fuel Consumption Account – CCC, referred to in § 3 of article 1 and article 8 of Law No. 8,631, of March 4, 1993, will reimburse, as of July 30, 2009, the amount equal to the difference between the total cost of generating electricity,  for the service of public electricity distribution in the Isolated Systems, and the valuation of the corresponding amount of electric energy by the average cost of the power and energy marketed in the ACR Regulated Contracting Environment of the National Interconnected System SIN, according to regulation."