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4.97. The mandatory blending ratio of biodiesel added to the oil diesel has increased to 12% as of March 2020, in volume, according to Law No. 13,263/2016. Throughout 2020, the percentage of mixture varied from 10% to 11%. In 2021, this mandatory blending ratio varied between 10% and 13%, depending on the auction, as a way to alleviate the impacts of biodiesel high cost on the diesel prices.

4.98. Biodiesel benefits from subsidization through federal tax exemptions and incentives for the Program of Social Integration (PIS/PASEP) and the Contribution for the Financing of Social Security (COFINS) taxes depending on the nature of the raw material, size of producer, and region of production, in order to encourage the production of biodiesel and to promote social inclusion, as well as the Tax on the Circulation of Goods and Services (ICMS) benefits at the state level. This scheme also requires a Social Fuel Seal Certificate. The prices have remained high, over BRL 6/litre since the middle of 2021.

4.99. During the review period, Brazil's installed capacity and power generation continued to grow at a fast pace. In 2021, Brazil had 190.2 GW of installed capacity for electricity generation (140.9 GW in 2015), generated 653 TWh of electricity, imported 23 TWh, and consumed 570 TWh. Hydroelectric sources accounted for 57.5% of installed capacity (65.1% in 2015), followed by wind and solar (17.7%), fossil fuel fired (15.5%), biomass (8.3%), and nuclear (1%) sources. Brazil's shares of renewables in the 2021 installed capacity of electricity was 84%, much above the shares of the world (38%) and the Organization for Economic Co-operation and Development (OECD) countries (40%). Electricity produced by the Itaipu plant and imported from Paraguay continues to account for most of Brazil's imports. In 2021, Brazil imported 17.2 TWh from Paraguay, 3.77 TWh from Argentina, and 2.18 TWh from Uruguay, and exported 0.04 TWh to Argentina. In 2021, the main power consumption groups consist of manufacturing (38.5%), residential consumers (26.6%), service activities (23.4%), agriculture (5.8%), and the energy sector (5.4%). In 2020, Brazil imported USD 1,453.9 million from Paraguay and USD 34,628 million from Argentina, and exported USD 1,950 million to Argentina. New hydro projects were delivered, most notably, the Belo Monte plant in the Amazon Basin, in full operation since 2019, and the fourth largest hydroelectric plant by capacity in the world. Other major hydro projects are being developed, such as the 400 megawatt (MW) Tabajara hydropower project, the 650 MW Bem Querer hydropower project, and smaller hydro projects with 500 MW or less.

4.100. Solar energy in Brazil increased 70% from 2020 to 2021, reaching 13 GW in installed capacity. Energy auctions from solar energy is expected to reach over USD 5 billion in 2022, in addition to USD 1 billion already invested in solar distributed generation since 2012, expected to significantly increase in the coming few years.

4.102. (...) In September 2021, a state-owned holding company was established to take over those operations that have been excluded from the Eletrobras privatization plan, i.e. Eletronuclear (nuclear power subsidiary) and the 50% participation Itaipu hydropower project. (...)

4.103. Brazil's Ten-year Energy Expansion Plan 2030 (PDE 2030) covering the electricity sector consolidates strategic objectives and initiatives to improve its performance. It aims to anticipate discussions and assess how technological changes, combined with economic, environmental, and consumers' preferences, should affect the national electricity system, as well as the opportunities to expand the matrix of generation and transmission. (...)

4.104. The Energy Expansion Plan (PDE) reaffirmed the commitment for the supply of electricity from renewable sources to reach 85% in 2020, set the objective to reach the level of 88% by 2030, in line with Nationally Determined Contribution (NDC) assumed under the Paris Agreement, as well as the determinations of Decree No. 9,578/2018. The Plan also set focus on the decarbonization of matrices. The challenges related to the participation of renewable sources variables, such as wind and solar photovoltaic, are increasingly present in the technical aspect as well as in the commercial and regulatory aspects of the Plan.

4.106. (...) Law No. 12,783 of 11 January 2013, which governs electricity generation, transmission, and distribution concessions, was amended by Law No. 13,203 of 8 December 2015, which provides for the renegotiation of the hydrological risk of electricity generation and establishes the bonus for the granting of a concession. (...)

4.108. As preliminary results of this joint work, the sectoral institutions have already enabled (...) the reduction of sectoral charges related to the construction of new renewable energy projects (...)

4.109. In terms of competencies, the National Agency for Electrical Energy (ANEEL) grants concessions for electricity generation, transmission, and distribution through authorizations or public tender procedures; the latter may involve auctions, which are organized by ANEEL and carried out by the Electric Energy Commercialization Chamber (CCEE). The generation concessions granted for hydropower may be extended at the discretion of the Government, only once for up to 30 years, in order to ensure the continuity and efficiency of the service provided as well as low electricity tariffs. (...) Regarding self generation of hydropower, concessions for up to 50 MW may be extended once for up to 30 years; generators may sell any non-consumed surplus in the spot free market. (...)