The Brazilian electricity sector made some progress in 2024. The main advances include the publication of a decree by the Ministry of Mines and Energy with guidelines for the renewal of energy distribution concessions; the holding of two energy transmission auctions, with the negotiation of all lots offered; and the approval of important texts in Congress, such as the renewable hydrogen framework, the fuel of the future project and the regulated carbon market.

On the other hand, some points expected by the market ended up not happening, including the capacity reserve auction and the bill to open the market and reduce subsidies. The assessment was made by PSR CEO Luiz Augusto Barroso during the MinutoMega Talks event, promoted by MegaWhat. The event brought together executives from relevant companies in the Brazilian electricity market, in November, in São Paulo.

“A good item in the year was the publication of the decree for the renewal of distributor concessions. It was a highly anticipated decree, the result of a great deal of discussion. And I think the content of the decree was very satisfactory. There were several other things that happened throughout the year as well. But if I had to highlight two items, they would be the non-holding of the capacity reserve auction and the publication of the decree on the renewal of concessions,” said Barroso, in an interview with journalist Camila Maia, at the event.

What can we expect for 2025?

Among the highlights for 2025 are the capacity reserve auctions, storage systems and isolated systems, announced by the government and which should occupy a large part of the regulatory agenda of the National Electric Energy Agency (Aneel) and the Ministry of Mines and Energy. In addition, the developments in the process of renewing distribution concessions, including the new contract, are also on the sector’s radar, according to Barroso.

There is also the expectation of implementing measures that encourage the modernization of the sector, promoting greater competitiveness and sustainability. With a market increasingly under pressure from environmental and economic challenges, the focus on innovation will be crucial to ensuring that the sector continues to be a strategic pillar for the country’s development. According to Barroso, the path to a more sustainable market involves making the application of subsidies in energy tariffs more rational.

“We need some kind of modernization so that we have a sustainable inflow of resources. Otherwise, we, as a sector, will go bankrupt at some point, possibly not too far i the future,” declared the CEO of PSR.

Defining a more detailed schedule for opening the market is also seen as essential for the sector. In addition to helping companies plan and develop financial products, the measure would increase competitiveness in the market. For the executive, this would therefore be a strategic step within the transformation agenda of an industry in full modernization.

To watch the event in full, click here.