Bolsonaro Passes Law to Expand Coal-Fired Power Plant Operation in South Carolina

The rule extends for 15 years, from January 2025, the supply contracts for coal-fired power stations in Santa Catarina. Photo: Archives / Agence ALSC

President Jair Bolsonaro has sanctioned the law that creates the equitable energy transition program, extending the contracts for the sale of electricity by coal-fired thermal power plants in Santa Catarina until 2040. The sanction was published this Thursday (6) in the Diário Official. The rule extends for 15 years, from January 2025, the supply contracts of these plants.

According to the General Secretariat of the Presidency, the law aims to preserve mining activity in Santa Catarina during the transition period. “The sanction of the project will be important to promote a fair energy transition for the coal region of the State of Santa Catarina, taking into account the environmental, economic and social impacts and the development of energy and mineral resources, in addition to supporting the concessionaires of the public distribution service. of small electric power ”, specifies the secretariat.

According to the government, a council made up of representatives of the government, workers and businesses will be responsible for implementing the program and defining the Just Transition Plan. “One of the proposed objectives is to identify resources for the development of activities necessary for the closure of coal mines, and to encourage the transition to other economic activities.

The law also creates an economic subsidy for small electricity distributors, with their own annual market of less than 350 gigawatt hours (GWh). Under the sanctioned rule, the rates applicable to these concessionaires cannot be higher than the rates of the electric power distribution concessionaire for an adjacent area and with an annual market of more than 700 Gwh.

The rule also defines that a large distributor who acquires another with its own market of less than 700 GWh / year will be entitled to 25% of the proposed subsidy for ten years. The general secretariat of the presidency said the measure will ensure the reasonableness of the tariffs of small energy distributors. The cost of this economic subsidy will be covered by the Energy Development Account (CDE), paid by all consumers in the country.

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