Brazil Senate advances PL 5.017/2019 to lock in fossil‑fuel power contracts

Senator Eduardo Braga (MDB‑AM) filed a request on 16 July for the Senate to send Bill PL 5.017/2019 to the Economic Affairs Committee. The proposal, which has already passed the Senate Infrastructure Committee, obliges the purchase of thermoelectric generation and sets a 2.5 GW target for gas‑fired plants with a minimum 70 % inflexibility, as well as 4.9 GW of small hydro plants up to 50 MW. It also mandates that ANEEL hold auctions for thermoelectric capacity in the North that uses Amazonian natural gas.

Environmental NGO Arayara condemned the text, saying it “disregards technical planning and creates captive fossil‑fuel consumers, whose billion‑dollar costs will be charged directly to electricity bills for the next 30 years.” The bill’s relator is Senator Hermes Klann (PL‑SC), and the deadline for amendment submissions is 21 July. Critics warn of severe climate, social and financial impacts, while supporters argue the measures are needed for the sector’s competitiveness.