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New Regulation Will Allow the Implementation of Hybrid Projects in Brazil
As of January 03, 2022, the requirements and procedures necessary for obtaining the Authorization (Outorga) and alteration of the installed capacity for the operation of hybrid power plants (HPPs) will come into effect. This regulation will allow the installation of power plants that combine sources of generation, whether from photovoltaic plants (PVP), wind plants (WPP), large and small hydroelectric plants (HPP/SPP), and thermoelectric power plants (TPP).
The Brazilian Electricity Regulatory Agency (ANEEL) approved the new requirements and procedures through Normative Resolution No. 954 of November 30, 2021, published in the Official Gazette of the Federal Executive on December 06, 2021 (Normative Resolution 954/2021).
Normative Resolution 954/2021 amended Normative Resolutions No. 77, of August 18, 2004, No. 247, of December 21, 2006, No. 559, of June 27, 2013, No. 583, of October 22, 2013, No. 666, of June 23, 2015, and No. 876, of March 10, 2020, to establish the regulatory framework for the implementation of Hybrid Power Plants (HPP) and associated power plants.
According to the new rules:
(a) “Hybrid Power Plant (HPP)” is the facility producing electricity from the combination of different generation technologies, with separated measurement devices per generation technology or not, object of a single Authorization (Outorga), and
(b) “Associated Power Plants” are two or more facilities, with the purpose of producing electricity with different generation technologies, with separated Authorizations (Outorgas) and measurement devices, which physically and contractually share the connection infrastructure and use of the transmission system.
The generation sources to be considered in the Authorization (Outorga) of HPPs will correspond to the installed capacity of each source of energy.
The deadlines for implementation may be different, contemplating the respective specific landmarks of each generation technology, when applicable.
Regarding the requirement to place guarantees, the resolution provides that a performance bond in the amount of 5% of a wind energy project must be placed, when the Authorization (Outorga) of HPP will contemplate the generation of energy by wind sources.
Regarding the discount that may be applicable to the tariff for use of the transmission systems of the projects, the resolution establishes that,
(a) in cases where there is no individualization of measurement devices by technology, the lowest discount percentage corresponding to the energy sources in the grant will be applied, being zero if one of the sources is not eligible for the discount; and
(b) in the cases where there is individualization of each technology or in the case of Associated Power Plants, a proportional discount to the monthly energy output by each source will be applicable.
Projects that already have a signed a CUST (Contract for Use of the Transmission System) and which association with other sources will be requested will have their previous CUSTs terminated, free of charge, and a new CUST will be signed, which must represent the features of the association of projects, after the issuance of a new access report.
Finally, the CCEE (Chamber for Commercialization of Electricity) and ONS (National Operator of the Electrical System) must submit to ANEEL, within 120 days, the changes to the Commercialization Rules and Procedures (RdCs) and (PdCs) and to the Network Procedures (Procedimentos de Rede), which will contemplate the provisions of the new resolution.
According to ANEEL, a new Normative Resolution regulating the criteria for adding a renewable source in diesel plants in isolated systems has also been approved. According to the agency, photovoltaic sources are highly complementary to diesel projects, compared to other renewable sources. The Resolution should be published in the next few days.
