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✍️ MP 1304: How Expert Energy and Energy Link Are Turning Challenges into Opportunities in Brazil’s New Energy Landscape"

MP 1304
July 18, 2025 by
✍️ MP 1304: How Expert Energy and Energy Link Are Turning Challenges into Opportunities in Brazil’s New Energy Landscape"
Expert Energy

Provisional Measure 1304/2025 represents a significant change in the Brazilian electricity sector, with direct impacts on subsidy management, natural gas marketing, and the contracting of energy generation sources. Below is a detailed analysis of the MP's main points and how Expert Energy, with its Energy Link software, can strategically position itself to benefit its customers and attract new users.

🧭 Key Points of Provisional Measure 1304/2025

1. Cap on the Energy Development Account (CDE)

  • Sets a spending cap for the CDE, which funds subsidies and public policies in the electricity sector
  • From 2026, the cap will be based on that year’s budget (estimated at R$ 40.6 billion).
  • If exceeded, a Supplementary Resource Charge will be created, paid by the agents who benefit from the subsidies.

2. Replacement of Thermoelectric Plants with Small Hydropower Plants (PCHs)

  • Replaces mandatory contracting of inflexible thermoelectric plants with PCHs in reserve capacity auctions.

3. Reorganization of Natural Gas Commercialization

  • The state-owned PPSA can now negotiate directly with agents like Petrobras.
  • The CNPE will define access conditions and pricing for infrastructure, aiming to reduce costs and increase competitiveness.

4.Energy Planning Based on Technical Criteria

  • Energy contracting will be limited to needs identified by national energy planning, based on technical and economic criteria.

🚀 Opportunities for Expert Energy and Energy Link

1. Smart Management of Charges and Subsidies

Energy Link can offer:

  • Custom dashboards to monitor subsidies and charges.
  • Tariff impact simulations.
  • Financial risk alerts for companies exceeding subsidy limits.

2.Strategic Energy Planning

Tools for:

  • Demand and generation modeling.
  • Feasibility analysis of renewable sources like PCHs.
  • Automated reports for auctions and regulatory processes.

3.Integration with the Natural Gas Market

Energy Link can include:

  • Contract management modules for gas.
  • Regulatory compliance tools.

4.Transparency and Stakeholder Communication

Energy Link can generate:

  • Auditable reports for regulators.
  • Communication tools for investors and clients.

Disclaimer:

It reflects the reading and interpretation by the Expert Energy team, based on the information researched and professional interpretations of the Electrical sector.