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At the end of August, the House of Representatives approved a temporary measure on extending subsidies to renewable energy sources, such as wind and solar power. However, PM can generate an additional cost of about R$4.5 billion annually for three decades.
The proposal, if approved, will affect the electricity bill that consumers pay. Residents of the northern and northeastern regions of the country will be most affected. The information was disclosed by Aneel (National Electric Energy Agency) to O Globo newspaper.
Renewable energy in Brazil
A few years ago, renewable power generation equipment was expensive for Brazil, because it was a new technology and there was little investment in this type of sector. Therefore, support was created in order to implement energy production in the country.
However, over the years, wind and solar energy have advanced on the national scene. Today, wind accounts for about 12% of installation capacity; Solar energy 3%. In this sense, experts criticize the MP, since progress has already been made, and the extension of the subsidy deadlines will affect the electricity bills paid by consumers for another 30 years.
Energy subsidies are paid by consumers through electricity bills. About 95% of the values are formed in this way. When considering fund effects only, there was an average 4.65% increase in energy tariffs, when it came to the South, Southeast and Midwest regions of the country.
In 5 years, the value of subsidies in the electricity sector doubled. From 2017 to 2022, the amount increased from R$ 15.99 billion to R$ 32.1 billion. In the same period, subsidies for renewable energy sources quadrupled.
Anil explains that over the next few years, there is already a significant amount of contracted renewable energy. Thus, extension of the support will not be necessary. The representative has been approved by the House of Representatives and needs to be voted on by the Senate by the end of this month to take effect.
Energy between regions of the country
Although Brazil has an interconnected power system, the final cost to Brazilians varies greatly by regions.
The regions most affected, if the proposal were approved, would be the north and northeast, which already have the highest tariffs in the country. But the effect of this measure will be felt by consumers across the country, who will find that their electricity bills will rise over the next 30 years.
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