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ARTICLE · 14 JUNE 2022

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Brazil Energy Journal - Power Distributed Generation

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Power Distributed Generation ("DG"), one of the fastest-growing Distributed Energy Resources in the world, has also been ramping up quickly over the past years in Brazil.

BrazilEnergy and Natural Resources

Overview

Power Distributed Generation ("DG"), one of the fastest-growing Distributed Energy Resources in the world, has also been ramping up quickly over the past years in Brazil. Brazilian law refers to DG as renewable power generation — mainly solar photovoltaic —by a captive customer of a power distribution concession area based on on-site or off-site power plants connected to the utility's distribution grid.

Power captive customers, whose electric energy are supplied by power distribution concessionaires (utilities), are allowed to install DG projects up to 3-5 MW (depending whether the energy source can be dispatched or not). In addition to the possibility of installing offsite DG projects, customers may also share an off-site power plant as members of a consortium, co-op, condominium, or civil association. The Brazilian net metering regulation allows customers to use the credits arising from excess power generated by the DG project within 60 months.

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This article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.

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