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Renewable Energy Sector Reacts to MP 1.304 and Warns of Risks to Distributed Generation and the Future of Clean Energy in Brazil

Written by Rannyson Moura
Published on 20/10/2025 at 15:03
Representantes das energias renováveis criticam a Medida Provisória 1.304 e alertam para impactos negativos na geração distribuída. Durante evento em São Paulo, líderes do setor pedem mais diálogo e denunciam a pressão de grandes grupos do setor elétrico. Fonte: Sérgio Nery
Representantes das energias renováveis criticam a Medida Provisória 1.304 e alertam para impactos negativos na geração distribuída. Durante evento em São Paulo, líderes do setor pedem mais diálogo e denunciam a pressão de grandes grupos do setor elétrico. Fonte: Sérgio Nery
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Renewable Energy Representatives Criticize Provisional Measure 1,304 and Warn of Negative Impacts on Distributed Generation. During an Event in São Paulo, Sector Leaders Call for More Dialogue and Denounce Pressure from Large Groups in the Electric Sector.

Discussions about the Provisional Measure 1,304/2025, which proposes changes to the subsidy and incentive rules of the electric sector, have triggered intense mobilization among representatives of renewable energy. The proposal, which loses validity if not voted on by November 7, is viewed with concern by entities linked to distributed generation (GD) — especially solar photovoltaic, one of the fastest-growing sources in the country.

During the 5th edition of Canal Conecta, held on October 20 and 21 at CREA-SP in São Paulo, sector leaders revealed behind-the-scenes negotiations in Brasília and criticized the conduct of the debate surrounding the MP. For them, the changes may represent a setback in the advancement of clean energy and in the democratization of access to self-generation.

Sector Representatives Criticize Government Conduct and Defend GD

The president of the Solar Livre Movement (MSL), Hewerton Martins, was emphatic in questioning how GD has been treated in discussions. According to him, there is an attempt to blame distributed generation for structural problems in the Brazilian electrical system.

“Does it make sense for distributed generation, which represents 5.6% of the country’s energy in 2024, to be pointed out as responsible for more than 90% of the problems in the Brazilian electric sector?” questioned Martins.

The executive highlighted that reports from EPE, ANEEL, and ONS prove that there has never been a blackout caused by GD, and warned that the country is wasting clean energy. He also noted that, according to the Decadal Energy Plan (PDE), the only source that doubles in size is thermal energy.

“Brazil is wasting solar energy. When we look at the EPE report, the only source that doubles in size is thermal. Solar grows, but it doesn’t double. How is it possible for the PDE to predict such a large increase in thermals to balance the system?” he questioned.

Renewable Energies and Consumer Empowerment

Martins reminded that the regulation of distributed generation, created in 2012, aimed primarily to empower consumers and allow citizens to generate their own energy. However, with the popularization of photovoltaic systems and the reduction of costs, the advancement of GD began to disturb large groups in the traditional electric sector.

“What large groups want is to remove the part of GD. They did not expect the price of solar energy to drop so much or for it to become popular among the poorer population,” said the president of MSL.

He emphasized that access to technology has been a factor of social and economic inclusion. According to Martins, the middle and lower classes have finally begun to benefit from self-generation, which has caused discomfort among the companies that dominate the market.

With a critical tone, he mocked the inconsistency of institutions:

“When solar panels are installed at the Supreme Court Palace, it is an energy efficiency project. But when the consumer does the same, it becomes a problem.”

Heber Galarce Denounces Omission and Defends Management Shock in the Energy Sector

The president of the National Institute for Clean Energy (INEL), Heber Galarce, also expressed concern about the course of discussions in the Senate. He reported on the atmosphere of public hearings and highlighted that the voices of the solar sector seemed isolated.

“The impression I had in the last hearings was that we were representing the solar sector against many people. I sincerely hope the Palace starts looking at this problem,” he stated.

Galarce criticized the discourse of “fairness and balanced competition” used by supporters of the MP, which, according to him, hides the true objective: to remove subsidies only from distributed generation.

“During the MP 1,304 committee, they said that GD harmed the sector because of subsidies. I stood up and suggested — in a provocative tone — to remove subsidies from everyone. No one raised their hand. In other words, they only want to remove it from GD.”

The leader also accused electricity sector leaders of omission.

“There is a great omission and cowardice from important figures, who do not face the root of the problem — the need for a management shock in the Ministry of Mines and Energy. It is easier to attack our sector,” he said.

National Mobilization and Protests Before COP 30

In light of the uncertain scenario, sector representatives announced plans for national mobilization. According to Martins and Galarce, a large demonstration is being organized before the COP 30, which will be held in Belém (PA).

The goal is to draw international attention to what they consider a risk to sustainability and the right of consumers to generate their own energy.

“We are seeking authorizations for the act. We want to show that Brazil is about to destroy thousands of jobs and limit consumers’ right to generate their own energy,” said Martins.

The initiative aims to bring together companies, technicians, and consumers in defense of distributed generation, just energy transition, and the preservation of the advances achieved in renewable energies.

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Rannyson Moura

Graduado em Publicidade e Propaganda pela UERN; mestre em Comunicação Social pela UFMG e doutorando em Estudos de Linguagens pelo CEFET-MG. Atua como redator freelancer desde 2019, com textos publicados em sites como Baixaki, MinhaSérie e Letras.mus.br. Academicamente, tem trabalhos publicados em livros e apresentados em eventos da área. Entre os temas de pesquisa, destaca-se o interesse pelo mercado editorial a partir de um olhar que considera diferentes marcadores sociais.

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