Former EPE President Warns: 'Jabutis' In Offshore Wind Project Will Impact Inflation and Hurt Industry.

Former EPE President Warns: ‘Jabutis’ In Offshore Wind Project Will Impact Inflation and Hurt Industry.

Written by Paulo Nogueira

Published on 14/12/2023 at 15:57

AnetteBjerg / Pixabay – Todos os direitos: CNN Brasil

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Survey Calculates Costs to Consumers Due to Bill Project in Energy Planning, with an Increase of R$ 25 Billion/Year Until 2050, Offshore Wind Farms, Coal-Fired Power Plants, Proinfa Contracts.

Luiz Barroso, former president of the Energy Research Company (EPE) and CEO of PSR, stated that the ‘jabutis’ contained in the bill project (PL) for the regulation of offshore wind farms may raise inflation and reduce the competitiveness of the industry. According to Barroso, these elements, which do not relate to the wind matrix, represent a risk for the wind sector.

The survey conducted by PSR Solutions and Consulting in Energy, presented at a meeting that brought together sector entities, showed that the jabutis present in the bill project could have significant impacts on the industry. The organizations present at the event discussed the proposed amendments and raised concerns about the effects of legislative malpractice on energy policies.

Bill in Legislative Process May Have Direct Impact on Energy Costs

According to a recent study, the proposed amendments and changes to the bill project (PL) could have a direct impact on energy costs for consumers. The additional cost is estimated to be R$ 25 billion per year until 2050, totaling R$ 658 billion over the period.

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Critics from Experts Include Legislative Interference in Energy Planning

One of the main aspects criticized in the bill is the specific contracting for offshore wind farms in the South, with a cost of R$ 5 billion, which could affect sector competitiveness. In addition, the maintenance of coal-fired power plants and the construction of hydrogen plants are also among the questioned points.

Experts warn that the proposed measures could harm the competitiveness of the energy sector and adversely affect the end consumer. Amendments that do not pass the rigorous technical scrutiny of planning may lead to significant additional costs over time, raising concerns about the impact on energy costs for consumers.

‘Jabutis’ and Associated Costs According to the Study

Contracting of inflexible natural gas thermal plants: R$ 155 billion
Postponement of the deadline for renewables to begin operations with subsidies: R$ 113 billion
Specific contracting of PCHs: R$ 140 billion
Postponement of the deadline for MMGD to begin operations with subsidies: R$ 101 billion
Maintenance of coal-fired power plants: R$ 92 billion
Construction of hydrogen plant: R$ 28 billion
Extension of Proinfa contracts: R$ 24 billion
Specific contracting for wind farms in the South: R$ 5 billion

Source: CNN Brazil

Former EPE President Warns: ‘Jabutis’ In Offshore Wind Project Will Impact Inflation and Hurt Industry.

Survey Calculates Costs to Consumers Due to Bill Project in Energy Planning, with an Increase of R$ 25 Billion/Year Until 2050, Offshore Wind Farms, Coal-Fired Power Plants, Proinfa Contracts.

Bill in Legislative Process May Have Direct Impact on Energy Costs

Critics from Experts Include Legislative Interference in Energy Planning

‘Jabutis’ and Associated Costs According to the Study

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