Operational Guide for the Legal Amazon’s electric energy program approved – Implementing Agents will have no less than 10% financial participation

Ministerial Ordinance n. 244/2020 of the Ministry of Mines and Energy (MME) approved the Operational Guide to the National Program for the Universalization of Access and Use of Electric Energy in the Legal Amazon – More Light for the Amazon. The Program aims to provide electricity to the population in the remote regions of the Legal Amazon with no access to this public service. It foresees the replacement of small diesel or gasoline power generators, commonly used by the local population, to renewable sources of electricity generation, mainly photovoltaic systems, thus contributing to the reduction of greenhouse gas emissions and encouraging the sustainable use of the Amazon Forest resources.

The Guide establishes the procedures, priorities, and the technical and financial criteria of the Program. It also regulates the conditions to release resources to  the Implementing Agent, the requirements to review the physical targets of the contracts, the financial terms of the contracts, and other obligations. The Program’s resources will come from the electric sector agents, the Energetic Development Account (CDE), instituted as an economic subsidy, and other sources to be regulated by MME and other governmental bodies. The main criteria for the allocation of CDE’s resources among Implementing Agents are based on regional shortages and the mitigation of tariff impact. The Implementing Agent’s financial participation, as a counterpart, will be agreed between the MME and the Executing Agent in a Statement of Commitment, amounting to a value of no less than 10% (ten percent).