31-01-2017

Distributed Generation (“DG”) is characterized by electric power generation systems located close to the energy consumers, regardless of the technology, capacity or energy source used. Nevertheless, it is more commonly found with renewable power sources up to 5MW –according to the Brazilian regulations.

The National Electric Energy Agency(“ANEEL”) has regulated two types of DG (both of which must necessarily use renewable energy), namely: (i) distributed micro-generation – where installed capacity is less than or equal to 75 (kW); and (ii) distributed mini-generation – for plants with installed capacity above 75kW and less than or equal to 3MW, for water-based sources, or 5MW for other sources.

Among the advantages of DG, we can highlight the reduction in the need for investments in expanding the distribution and transmission of energy systems, the low environmental impact, the improvement of the network tension level during heavy load periods and the diversification of the energy matrix. On the other hand, there are disadvantages such as the increase in complexity of the energy network operation system and the difficulty of charging for the use of the electric system.

The aforementioned disadvantages, however, have not proved obstacles to the exponential increase of DG systems installed in Brazil, which, by mid-January of current year, had already passed the mark of 7,000 connections, according to the Brazilian Association of Distributed Generation. The state of Minas Gerais, to date, has emerged as the largest user of DG and photovoltaic solar energy is the most used energy source.

One of the great advantages arising from ANEEL’s regulation (ANEEL Normative Resolution No. 482/2012) of DG is the so-called Electric Energy Compensation System (“System”). The System allows the surplus energy generated by a consumer unit connected to the DG network to be fed into the distributor’s network, which will store that extra amount of energy.

Whenever the energy fed into the network is greater than the amount used, the consumer will receive an energy credit, valid for up to 60 months, which can be used either to offset the charges of power of another unit held by the consumer in the same concession area or to offset the amounts charged on invoices in subsequent months.

The DG can be operated in different ways, in the benefit of either a group or a sole consumer, involving one or more consumer units. The growth of DG in the near future is extremely promising. So, the advance in regulation, as well as its development in practice, is fundamental to the development of the Brazilian energy policy.

We remain at your disposal for any additional information: Guilherme Schmidt, Rogério MirandaCelina OzorioBruna Borges,Isabela FariaMarina CyrinoIasmim Carvalho and Bruno Guedes.

Legislation and Regulation of the Power Sector from December 1st to 30th , 2016

Ordinances of MME:
Ordinance No. 659, dated December 1st, 2016: Amends paragraphs 3 and 4 of article 19 of MME Ordinance 104, dated 03.23.2016. To access the full text, click here.
Ordinance No. 660, dated December 1st, 2016: Amends articles 1 and 3 of MME Ordinance 622, dated 11.17.2016. To access the full text, click here.
Ordinance No. 697, dated December 9, 2016: Authorizes the Electricity Company of Amapá – CEA, to provide the service of distribution of electric energy in municipalities of the state of Amapá, under the terms defined by the National Agency of Electric Energy – ANEEL. To access the full text, clickhere.
Ordinance No. 705, dated December 14, 2016: Cancels the Auction for the Contracting of Reserve Energy, referred to as the 2ndReserve Energy Auction of 2016. To access the full text, click here.
Ordinance No. 706, dated December 15, 2016: Designates Amazonas Geração e Transmição de Energia S.A., as responsible for the provision of the public power transmission service, under the responsibility of Amazonas Distribuidora de Energia S.A., in order to guarantee the continuity of the service. To access the full text, click here.
Ordinance No. 711, dated December 21, 2016: Amends article 1 of MME Ordinance 382 dated 12.03.2007; also revokes MME Ordinance 374, dated 07.25.2014. To access the full text, click here.
Ordinance No. 714, dated December 27, 2016: Establishes that the current values for the physical power guarantee of the Hydroelectric Power Plants centrally dispatched to the National Interconnected System – SIN, including the Itaipu Hydroelectric Power Plant, remain valid until 12.31.2017. To access the full text, click here.

Resolutions of ANEEL:
Normative Resolution No. 749, dated December 6, 2016: Approves revision 1 of Sub-module 9.8 of the Tariff Regulation Procedures – PRORET, which deals with the methodology for calculating the ceiling price of the Annual Permitted Revenue from auctions of electric power transmission concessions in Brazil. To access the full text, click here.
Normative Resolution No. 751, dated December 13, 2016: Regulates the procedures for ratification and inspection of administrative, financial and tax costs (CAFTs) incurred by the Electric Energy Trading Chamber – CCEE in the management of sectorial accounts; also revokes section II of art. 22 of Normative Resolution of ANEEL 337, dated 11.11.2008; arts. 2 and 3 of Normative Resolution of ANEEL 519, dated 12.11.2012; and paragraph 1 of art. 33 of Normative Resolution of ANEEL 530, dated 21.12.2012. To access the full text, click here.
Normative Resolution No. 752, dated December 13, 2016: Amends Normative Resolution of ANEEL 693, dated 12.15.2015, which establishes the criteria for the application of the mechanism of offset of surpluses and shortfalls of electric energy and capacity in commercialization contracts for electric energy coming from new generation enterprises. To access the full text, click here.
Normative Resolution No. 753, dated December 13, 2016: Establishes the methodology and limits for the continuity indicators DEC and FEC of the sets of consumer units of the licensees of electricity distribution; and revokes ANEEL’s Authorizing Resolutions 4,931, 4,933 and 4,934, dated 11.19.2014. To access the full text, click here.
Normative Resolution No. 754, dated December 13, 2016: Approves the Proceedings of the Research and Development Program – PROP&D, also amends Sub-modules 2.7 and 9.1 of the Tariff Regulation Proceedings – PRORET. To access the full text, click here.
Normative Resolution No. 755, dated December 16, 2016: Approves the Rules of Commercialization of Electric Energy applicable to the System of Liquidation and Accounting – SCL. To access the full text, click here.
Normative Resolution No. 755, dated December 16, 2016: Approves the 2016.12 revision of Modules 2, 3, 4, 5, 6, 7, 8, 9, 11, 12, 13, 14, 15, 16, 18, 19, 20, 21, 22, 23, 24, 25 and 26 and of Sub-modules 10.1 to 10.17 of the Network Proceedings; and revokes the Resolution of ANEEL 025, dated 02.10.1999; art. 16 of the Resolution of ANEEL 247, dated 08.13.1999; the Resolutions of ANEEL 420, dated 10.31.2000; 140, dated 03.25.2002; 689, dated 12.13.2002; 791, dated 12.24.2002; the Decision of ANEEL 849, dated 12.24.2002; the Resolution of ANEEL 333, dated 07.08.2003; the Authorizing Resolutions of ANEEL 351, dated 11.11.2005; 565, dated 05.16.2006; 787, dated 01.23.2007; 1,051, dated 09.25.2007; 1,287, dated 03.04.2008; 1,382, dated 06.03.2008; 1,469, dated 07.22.2008; the Decision of SRG/ANEEL 2,762, dated 07.28.2008; 3,257, dated 09.02.2008; the Authorizing Resolution of ANEEL 1,601, dated 10.07.2008; the Normative Resolution of ANEEL 372, dated 07.28.2009; the Decision of SRT/ANEEL 2,744, dated 09.15.2010; the Decision of ANEEL 3.134, dated 08.02.2011; and the Normative Resolution of ANEEL 461, dated 11.09.2011. To access the full text, click here.
Ratifying Resolution No. 2,186, dated December 13, 2016: Amends art. 6 of the Ratifying Resolution of ANEEL 1,992, dated 12.08.2015, which ratified the result of the Revision of the Rural Universalization Plan of Energisa Mato Grosso do Sul – Distribuidora de Energia S.A. – EMS. To access the full text, click here.
Ratifying Resolution No. 2,188, dated December 13, 2016: Establishes the rate of transfer of contracted power of the Itaipu Hydroelectric Power Plant, to be used by Centrais Elétricas Brasileiras S.A – Eletrobrás, applicable to invoices issued from January 1st to December 31, 2017. To access the full text, click here.
Ratifying Resolution No. 2,189, dated December 13, 2016: Republishes the Social Tariff of Electric Energy applicable to low income residential consumers, for the year of 2017. To access the full text, click here.
Ratifying Resolution No. 2,190, dated December 13, 2016: Establishes the values of the Curve of Shortfall Cost of electric energy, of the Energy Optimization Tariffs  (TEO) and TEO Itaipu, of the Ancillary Services Tariff (TSA) and of the minimum and maximum limits of the Liquidation of Differences Price (PLD), for 2017. To access the full text, click here.
Ratifying Resolution No. 2,191, dated December 13, 2016: Establishes, for the year of 2017, the costing and electricity quotas resulting from the apportionment of the cost and electric energy generated under the Program of Incentive for Alternative Sources of Electric Energy – PROINFA. To access the full text, click here.
Ratifying Resolution No. 2,193, dated December 16, 2016: Establishes the fixed revenue for the year 2017, related to the generation of energy from the Angra 1 and 2 Nuclear Generation Plants; and fixes the tariff regarding energy originating from the generating companies. To access the full text, click here.

Decisions of ANEEL:
Decision No. 3,203, dated December 6, 2016: Approves the Annual Plan of Internal Audit Activities – PAINT, for the period of 2017. To access the full text, click here.
Decision No. 3,256, dated December 13, 2016: Partially revokes the adjudication of the Transmission Auction ANEEL 01, of 2015, regarding Isolux Ingeniería S.A. – ISOLUX, winner of the Lots D and H of the aforementioned Auction. To access the full text, click here.
Decision No. 3,312, dated December 16, 2016: Determines that, in 2017, the Electric Energy Trading Chamber – CCEE will suspend the effects of the application of the Availability Factor – F_DISP, provided for in the Commercialization Rules, to inflexible wind-powered and thermoelectric plants, by adopting the value of 1 (one) for this factor. To access the full text, click here.

Public Hearings of ANEEL:
Notice of Public Hearing No. 82, dated December 7, 2016: Announces that the Public Hearing was opened with a contribution period until 01.31.2017, in order to obtain information for the improvement of Sub-modules 9.3 and 10.4 of the Tariff Regulation Procedures – PRORET. To access the full text, click here.
Notice of Public Hearing No. 83, dated December 7, 2016: Announces that the Public Hearing was opened, with a contribution period until 01.06.2017, in order to obtain information regarding the effects of correcting the undue participation of thermoelectric plants Maranhão III, Baixada Fluminense and Vale do Tijuco in the Mechanism of Offset of Surpluses and Shortfalls – MCSD Phased Contracting, executed by the Electric Energy Trading Chamber – CCEE in 2012, with effect from 2015To access the full text, click here.
Notice of Public Hearing No. 84, dated December 7, 2016: Announces that the Public Hearing was opened, with a contribution period until 02.06.2017, in order to obtain information for the improvement of the regulations on the treatment of costs arising from taxes on economic subsidies and the form of presentation in electric energy bills. To access the full text, click here.
Notice of Public Hearing No. 85, dated December 7, 2016: Announces that the Public Hearing was opened with a contribution period until 01.13.2017, in order to obtain information for the revision of Normative Resolution No. 412/2010, which establishes the general rules for the issuance of authorization for the implementation of hydroelectric power plants which are not classified as small power plants and whose installed power is between 5,000 and 50,000 kW. To access the full text, click here.
Notice of Public Hearing No. 86, dated December 7, 2016: Announces that the Public Hearing was opened, with a contribution period until 02.06.2017, in order to obtain information for the improvement of Normative Resolution No. 323/2008, which establishes the criteria and procedures for the information, registration, approval and ratification by ANEEL of electricity commercialization contracts. To access the full text, click here.
Notice of Public Hearing No. 87, dated December 14, 2016: Announces that the Public Hearing was opened with a contribution period until 01.27.2017, in order to obtain information for the analysis of the Request presented by Energisa S.A. to group the concession areas of the public electricity distribution service regulated by the Concession Agreements No. 12/1999, 13/1999, 14/1999, 16/1999 and 22/1999 held, respectively, by Empresa Elétrica Bragantina S.A. – EEB, by Caiuá Distribuição de Energia S.A. – Caiuá-D, by Companhia de Distribuição de Energia Vale Paranapanema S.A. – EDEVP, by Companhia Nacional de Energia Elétrica – CNEE and Companhia Força e Luz do Oeste – CFLO, concessionaires controlled by Energisa S.A.. To access the full text, click here.
Notice of Public Hearing No. 88, dated December 14, 2016: Announces that the Public Hearing was opened with a contribution period until 01.31.2017, in order to obtain information for the improvement of the proposal to authorize Cooperativa de Eletrificação de Ibiúna e Região – Cetril to eliminate interruptions of external origin to the distribution system, (as occurred in June 2016), and of the calculation of compensation for breach of the monthly, quarterly and annual indicators of individual continuity of DIC, FIC, DMIC and DICRI. To access the full text, click here.
Notice of Public Hearing No. 89, dated December 19, 2016: Announces that the Public Hearing was opened with a contribution period until 01.30.2017, in order to obtain information for the discussion and eventual signature of a contractual amendment and for the improvement of the fourth tariff revision of LIGHT and definition of the limits of DEC and FEC of the Distributor’s consumer units from 2018 to 2022. To access the full text, click here.
Notice of Public Hearing No. 90, dated December 19, 2016: Announces that the Public Hearing, was opened with a contribution period until 01.17.2017, in order to obtain information for the approval of the annual budget of the Energy Development Account – CDE for the year 2017 and setting the annual quotas to be paid by all Agents of the National Interconnected System that serve end-consumers of electric energy. To access the full text, click here.
Notice of Public Hearing No. 91, dated December 19, 2016: Announces that the Public Hearing was opened, with a contribution period until 01.20.2017, in order to obtain information to improve the system of tariff “flags” and define the activation zones and extras for the year 2017. To access the full text, click here.
Notice of Public Hearing No. 92, dated December20, 2016: Announces that the Public Hearing was opened, with a contribution period until 01.23.2012, in order to obtain information to improve the Bidding Notice and the Annexes to Auction No. 5/2016-ANEEL, which is intended to contract concessions for the provision of the public electricity transmission service, including the construction, operation and maintenance of the transmission facilities that will become part of the Basic Network of the National Interconnected System (SIN). To access the full text, click here.
Notice of Public Hearing No. 93, dated December 20, 2016: Announces that the Public Hearing was opened with a contribution period until 01.30.2017, in order to obtain information for the development and reimbursement of the costs of implementation of the Auctions System Chain – System for integration of Bases for Registration in the Auctions, Management of Financial Guarantees and Management System of Contracts for the Regulated Contracting Environment (ACR)To access the full text, click here.
Notice of Public Hearing No. 94, dated December 20, 2016: Announces that the Public Hearing was opened with a contribution period until 02.02.2017, in order to obtain information for the improvement of the drafting of the new concession agreement for the public electricity distribution service, in compliance with the provisions of §1-A of art. 8 of the Law No. 12,783/2013. To access the full text, click here.
Notice of Public Hearing No. 95, dated December 20, 2016: Announces that a Public Hearing was opened with a contribution period until 01.18.2017, in order to obtain information to improve the draft of the amendment to the Electric Power Distribution Concession Agreement of Ampla Energia e Serviços S.A., pursuant to Decision No. 2,194/2016. To access the full text, clickhere.
Notice of Public Hearing No. 96, dated December 20, 2016: Announces that the Public Hearing was opened, with a contribution period until 02.24.2017, in order to obtain information for the new procedures for the sharing of infrastructure of electric power concessionaires and licensees with agents of the same sector – as well as with agents from the sectors of Telecommunications and Oil and Gas – with the Direct or Indirect Public Administration and with other interested parties. To access the full text, click here.

Public Meetings of   the Board of Directors of ANEEL:
46th Public Meeting: Held on 12.06.2016. To access the content and the video of the meeting, click here.
47th Public Meeting: Held on 12.13.2016. To access the content and the video of the meeting, click here.
6th Extraordinary Public Meeting: Held on 12.16.2016. To access the content and the video of the meeting, click here.
Electric Sector Monitoring Committee Meeting (CMSE) of the MME:
175th Ordinary Meeting: Held on 12.08.2016. To access the content and the video of the meeting, click here.

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