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    Brazil: Pro-Amazônia Legal Program will reduce energy costs in isolated locations


    May 26, 2022 - Brazil Business News

     

      May 25 -- Government of Brazil issued the following news release:

      - Resources from Eletrobras' privatization will be used to replace fossil fuel with the use of a renewable energy source in isolated locations

      Residents of hard-to-reach regions, mainly in the Amazon, use diesel-powered generators to produce electricity. In addition to being expensive, this source is more polluting. To resolve this situation, the Federal Government published a decree that regulates the Program for Structural Reduction of Energy Generation Costs in the Legal Amazon and Navigability of the Madeira River and the Tocantins River (Pro-Amazônia Legal), provided for in the law that authorizes the Eletrobras privatization process.

      For ten years, the program will receive R$ 295 million annually from Eletronorte to be invested in projects that reduce the costs of electricity generation supported by the Fuel Consumption Account (CCC). The CCC is a charge of the Brazilian electricity sector paid by all electricity distribution and transmission concessionaires. The money is used to subsidize the annual costs of generating Isolated Systems, which are areas not yet integrated into the National Interconnected System (SIN).

      About three million inhabitants served by isolated systems in the states of Acre, Amapá, Amazonas, Pará, Rondônia and Roraima will benefit from the Pro-Amazônia Legal Program.

      “Usually, these locations, because they are further away, use a lot of fossil fuels, diesel. And it is not always possible to serve these communities 24 hours a day. The idea, when introducing this program, is to replace this fossil fuel with the use of a renewable source of energy, renewable fuels, energy efficiency, changing equipment and improving the use of energy in these more remote locations and, if possible, integrate these locations into the Interconnected System. using transmission lines or distribution lines”, explains the director of the Energy Planning Department of the Ministry of Mines and Energy (MME), Thiago Prado.

      According to the MME, the program will benefit the population in general. “The Program manages to reach not only those who are living in isolated communities, but also consumers of the Interconnected System, because parts of these costs are borne in our tariff on the electricity bill”, emphasizes Thiago Prado.

      Pro-Amazônia Legal resources should also be applied to the implementation of measures that improve the navigability of the Madeira River, which runs from Rondônia to Amazonas, and the Tocantins River, which begins in Goiás and passes through the states of Tocantins, Maranhão and Pará.

      The decree also establishes the Pro Amazon Legal Management Committee (CGPAL), formed by representatives of the MME, the Ministry of Infrastructure (Minfra), the states and distributors of the Legal Amazon that have isolated systems and representatives of consumers.

      The Management Committee will prepare, annually, a work plan with actions to be developed for the next year. The plan will also evaluate, propose guidelines and define actions for the application of resources.

      “It will be R$ 3 billion over 10 years and the Government will have 15 years to apply this resource. If this resource is not used, we will be able to allocate it to our Energy Development Account, also aiming to reduce the electric energy bill”, concludes the director of the MME's Energy Planning Department, Thiago Prado.

      Disclaimer: The Above Content is Auto-Translated

      Source: Government of Brazil

      [Category: Energy]

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