The distributed generation regime in Brazil: The electricity compensation system in Federal Law No. 14,300 of January 2022

Abstract

Federal Law No. 14,300, of January 6, 2022, introduced substantial changes to the Energy Compensation System (SCEE) applicable to consumers with small-sized distributed generation in Brazil until then governed by Normative Resolution No. 482, of April 17, 2022, of the National Electric Energy Agency (ANEEL). The SCEE enables consumer units participating in any of the compensation modalities to reduce the amount of energy consumed with energy injected into the distribution network. It was reformed under the new Law to update the requirements applicable to consumers to frame the categories of micro and mini distributed generators and of potential beneficiaries; the modalities of energy surplus compensation, the legal framework for energy credits, and the methodology for compensation for electricity consumed, with the creation of transition regimes for the incidence of new tariff components on compensated energy and changes in the application of the availability tariff on the consumer unit that is part of the SCEE and of the contracted demand on the consumer unit with micro or mini distributed generation.

JEL CODE: O13, P28.