Carlos Portinho trusts swift approval of Regulatory Act for Renewables Offshore Energy

Carlos Portinho (PL-RJ), rapporteur of the Regulatory Act for Renewable Offshore Energy trusts a swift approval of the act is possible. The hopes are for a green light from the Infrastructure Commission of the Senate even before the mid-year Parliament recess. Upon approval, the act shall be sent for Presidential sanction until 14th of July. The act shall regulate the mechanism of concession of areas for offshore wind farms and other floating renewable energy facilities, such as solar power. The act provides certain stimulation such as the reduction of royalties from 5% to 2% as incentives in favour of the relevant capital expenditures of larger offshore facilities. Brazil has favourable conditions for offshore wind propjects and could host one of the largest portfolios in the world. 54 offshore wind farm projects are currently on the pipeline for licensing in the Brazilian Environmental Agency (IBAMA) with a total generation capacity of approximately 133 GW of power. Besides the traditional energy companies such as TotalEnergies, Shell, Equinor and Petrobras, several other offshore wind players are also on the prospective list. This is an important move in the direction of a regulated market, while other relevant policies and procedures are still on the drawing board. Our dedicated resources in the segment are insisting that a definition is also required on the tributary regimen that should apply to the local construction and importation of assets, equipment and resources in the new energy segment. Would the renewables segment host the same policies as given to other energy sources, such oil and gas? More to follow.