Energy Compensation System: A new way of distributing energy and reducing carbon footprint

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Frederico Vasconcellos
Jones Lang LaSalle, Brazil

Estimations of the Energy Information Administration (EIA) show that global energy use is expected to jump 53% by 2035. Brazil,China and India will be the countries pulling these statistic numbers up. Inspite of that, we know that Energy resources are limited and we need to keep raising awareness on sustainable development, mainly on the emerging countries.

In Brazil, industries now can see a new and positive scenario regarding energy consumption. Last month, ANEEL (National Agency of Electrical Energy) approved rules to reduce obstacles to the installation of distributed generation of up to 100 kW of power (micro generation), and from 100 kW to 1 MW of power (mini generation). The regulation establishes the Energy Compensation System, which allows consumers to install small generators in their consumer units and exchange electricity with the local distributor. The rule applies to generators with incentive that use cleaner energy sources such as hydro, solar, biomass, qualified cogeneration and wind.

In this system, an industrial plant (or even a residence) can produce its own power and the exceding electricity can be injected into the distribution system and convert it into credit that can be used within the following 36 months. Credit information will be available on the monthly invoice for any type of consumer. Companies with subsidiaries that are on the system can also produce energy at one facility that will be consumed in another, reducing the bill at the end of each month.

Besides the Energy Compensation System, ANEEL approved other incentives on the transmission and distribution costs, exclusively for solar pannels projects. Any solar plant that start producing until December 31st, 2017, will have 80% discount on taxes during the first 10 years of operation. After that the discount will be reduced to 50% which will be the same tax to the new projects on operation after January 1st, 2018.

This new scenario brings many advantages over the traditional centralized generation such as the reduction of transmission costs, losses on the network and improvement of the quality of electricity service.

The new rules are addressed to generators using renewable energy sources, and with that, the agency hopes to provide better conditions for the sustainable development of the Brazilian electricity sector, through the adequate use of natural resources and efficient use of electrical networks. Good news for Brazil and for the planet!

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