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4.110. Setting up thermoelectric plants with a capacity of more than 5 MW requires the National Agency for Electrical Energy (ANEEL) authorization; the same applies to hydroelectric plants with a capacity greater than 15 MW but equal to or lower than 50 MW. Hydroelectric projects with capacity greater than 50 MW require public provider concessions in order to trade part of their electricity via auctions. Authorizations for building and operating new thermoelectric generators and certain hydropower plants are granted for 30 years, non-renewable. A renewable period of 35 years is envisaged for new hydroelectric generators. Concessions for building hydropower plants with a capacity greater than 50 MW are granted for 35 years, non-renewable. Legislation in this area included the possibility of undertaking existing hydropower plants auctions as a means of collecting a bonus for the concession (a payment for the concession right).

4.112. Energy auctions organized by the Ministry of Mines and Energy (MME) are the main procurement mechanism for distribution companies to acquire energy from generating companies. (...) the National Agency for Electrical Energy (ANEEL) approved the final result of the New Energy Auction A-5 from September 2021, whose investments attracted up to BRL 3.067 billion, enabling the operation of 40 plants with a combined capacity of 860,796 MW. The supply of electricity from this auction is scheduled for January 2026. The auction included electricity from new generation projects, including hydropower, wind, and solar photovoltaic sources, as well as biomass, natural gas, mineral coal, and urban solid waste treatment plants. (...)

4.113. Average electricity supply tariffs increased by 14.99% in 2018 and then rose progressively by 1.67% (2019), 3.25% (2020), and 8.23% (2021) to BRL 602.73 per MWh excluding taxes; these developments were broadly in line with the average inflation rate of 16.6% (IGPM) and 7.0% (IPCA) in the period 2017-21. These tariff developments, inter alia, were due to (...) rainfall scarcity directly impacting hydroelectricity offer, and recourse to generation from thermal plants). [166]
[166] EIU (2022), Industry Report – Energy – Brazil, 17 February: "Severe drought afflicted Brazil's hydropower-dependent economy in 2021. To address this, the state authorities permitted thermal power plants to operate for up to six months without power-purchase agreements (...)

4.114. The tariffs charged to the final consumers remain regulated by the National Agency for Electrical Energy (ANEEL) and vary depending on operational and other costs incurred by the distribution company. Several changes were introduced during the review period. A tariff flag system, which allows the monthly pass through of the extra costs of generating thermal energy to consumers, continued to be applied by all concessionaires connected to the National Integrated Grid (SIN) and to energy distribution concessionaires; the system is aimed at preventing energy distributors from experiencing financial problems again. (...) Industries can be credited with the Tax on the Circulation of Goods and Services (ICMS) according to their production processes. [169] (...)
[169] There are federal (PIS/COFINS), state (ICMS), local (CIP or COSIP (Contribuição para Custeio do Serviço de Iluminação Pública or Contribution for the Cost of Public Lighting) and other taxes/taxes CCC (Conta de Consumo de Combustíveis or Fuel Consumption Account) (...) CFURH (Compensação financeira pelo uso de recursos hídrico or Financial Compensation for the Use of Water Resources) included in the electricity bill.

4.127. (...) According to the authorities, the National Bank for Economic and Social Development (BNDES) provides long term financing in wind and solar greenfield plants for up to 80% of the whole investment (which includes domestic and foreign produced equipment). Since January 2021, there are no minimum requirements of Brazilian steel for building wind towers. Since August 2020, financing of photovoltaic energy projects of systems above 375 kW is subject to having one of the following components accredited with BNDES: modules, trackers, or inverters. [197] BNDES funding for FINAME was approximately BRL 23.6 billion in 2020 (BRL 16.6 billion in 2014 and BRL 16.5 billion in 2015).
[197] According to the authorities, for both wind and photovoltaic equipment suppliers, BNDES has a policy to mirror the market supply conditions, considering new technologies and production lines developed.

4.157. Brazil's commitments under the General Agreement on Trade in Services (GATS) were last changed in March 2016 with the ratification and insertion of the Fifth Protocol undertakings in the area of financial services. Brazil's Schedule of Specific Commitments contains undertakings in certain business services (including professional services), construction services, courier services, distribution services, financial services, hotels and restaurants services, as well as rail, road, and pipeline transport services and those auxiliary to all modes of transport. [226] (...) Brazil does not have commitments in such sectors as (...) environmental (...) services. (...)
[226] Sectors in which there are no commitments include (...) environmental (...) services.

4.158. (...) In the Southern Common Market (MERCOSUR), Brazil undertook specific commitments on trade in services that went significantly beyond the commitments under the General Agreement on Trade in Services (GATS) (Section 2.3.2.1). These commitments covered new sectors ((...) environmental (...) services) (...)

4.204. The (insurance) sector's 2015-24 Strategic Plan was renewed and is aimed at expanding access to and use of services of an adequate quality and at affordable prices, stimulating competition and sustainability (...)

4.213. The Integrated and Sustainable Amazon Programme (Programa Amazônia Integrada e Sustentável (PAIS)) enabled the construction of the Federal Public Administration's Private Communication Network resources for the implementation of fibre optic transport networks in the Northern Region. (...)

4.261. (...) Since the beginning of 2019, Brazil has granted 34 airports to the private sector. The 5th, 6th, and 7th concession rounds offered flexible regulations, compatible and proportional to the size of each airport in relation to tariffs, investments, and quality of services. (...) The future concessionaires (...) will have five years, instead of three, to complete works to correct non-conformities at airport sites, obtaining environmental and other certifications and licences. (...)