Ministry of Mines and Energy publishes ordinance for further opening of the free energy market

By cave-admin 07/01/2020

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Ministry of Mines and Energy publishes ordinance for further opening of the free energy market

By cave-admin 07/01/2020

December 16, 2019 marked another important victory for the free energy market. The Ministry of Mines and Energy (MME) published its Ordinance No.465 with a new schedule for reducing the required contracted demand for free consumers.

This follows the trend we have seen since 2018, which is to gradually reduce the minimum demand required for consumers to buy their energy from any sources within the National Interconnected System (SIN).

Check out the new schedule:

 From January 1, 2021: Consumers with demand equal to or greater than 1,500 kW will be free to buy energy from conventional sources;

From January 1, 2022: Consumers with demand equal to or greater than 1,000 kW can also buy energy from conventional sources;

From January 1, 2023: Consumers with a demand of 500 kW or more can also start to buy energy from conventional sources.

In addition to these dates, the ordinance also stated that by January 31, 2022, the National Electric Energy Agency (Aneel) and the Electric Energy Trading Chamber (CCEE) must present a study with all the regulatory measures necessary to open the free market for consumers with loads below 500 kW. The new model is expected to take effect from 2024.

MegaWhat, the energy intelligence company in the Comerc Energia group, released more details about the ordinance.

What was it like before this proposal?

Until July 2019, the minimum demand required for a consumer to purchase power from conventional sources was 3,000 kW. Today, the minimum demand is 2,500 kW; from January 2020, it will be reduced to 2,000 kW.

Consumers with lower demands (from 500 kW, which is the threshold to migrate to the free energy market), must buy their energy from incentivized (renewable) sources.

Our Comercast #8 discusses the changes introduced by the ordinance.  Click here and learn more about it.

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