Brazil's ANEEL pushes energy efficiency program reforms as regulatory capture concerns rise

The National Electricity Agency (ANEEL) opened Public Consultation No. 018/2026 to review Brazil’s Energy Efficiency Program (PEE), created by Law 9.991/2000 and requiring electricity distributors to allocate part of their revenue to projects that cut electricity waste.

Energy‑efficiency specialist Ricardo Kenji warned that the current framework favours low‑risk, easy‑to‑implement projects and discourages performance‑based contracts, limiting market growth and the participation of Energy Service Companies (ESCOs). He argued that broader, better‑incentivised calls could attract more firms, raise competition and deliver greater benefits to industry and the power system. Kenji said, “The central point is simple: the program must make the distributor want to seek the best project, not just the easiest one.”

A separate analysis points to broader worries that political pressures may erode the autonomy of Brazil’s regulatory agencies, including ANEEL, potentially harming credibility, investment confidence and the effectiveness of reforms such as the PEE.