Flaviopédia Português
Brazil that Grows

Energy

abundant, cheap energy means a lower power bill and industry with its doors open

Proposes a National Energy Security Program, unconventional gas exploration, expanded gas and transmission networks, a gradual cut to the CDE power-sector fund and incentives for biofuels and data centers.

In the program: [p. 52, 53] · Translated by Flaviopédia from the official Portuguese text; the Portuguese quote is authoritative. Read the original in Portuguese

What the program says

Our objective is total energy security at the lowest possible price for the consumer. The National Energy Security Program shall focus on refining, processing, outflow and transport of fuels and gas, allow the exploration of unconventional gas (fracking) with environmental responsibility and in compliance with the law, and expand and modernize the transmission grid, integrating new renewable sources and reducing congestion. And we will turn our oil and gas wealth into energy and jobs. It was the Bolsonaro government that signed the New Gas Law in 2021, breaking the monopoly, opening the sector to competition and creating the conditions for the price of gas to fall. We will continue along this path, unlocking the infrastructure investment the country needs: Brazil produces more and more gas in the pre-salt layer, but wastes part of it for lack of outflow capacity, while it imports expensive gas from abroad. We will support the expansion of the gas outflow and transport network according to demand, with legal certainty and stable rules that attract private investment, to connect the states that are currently disconnected to the network and make energy cheaper for industry and families. On the same principle, we will encourage the modernization of refining toward the use of domestic oil, encourage the shipment of fuel to the Center-West by modes cheaper than trucks, and favor domestic fertilizer production from gas, to reduce the foreign dependence that weakens agribusiness and our food security. In electricity, we will simplify the power bill, rationalizing charges and cross-subsidies, and promote the gradual reduction of the CDE (the Energy Development Account, a power-sector fund) and of incentivized sources, while maintaining the social tariff. The same reduction in taxes on energy and fuels that eases household budgets, detailed in Cheaper Brazil, makes the country competitive in attracting data centers and artificial intelligence, which set up where energy is cheap and reliable. We will regulate the various sources seeking the lowest price for the end consumer, implement an energy storage program, with large-scale batteries and other technologies, and turn the country into a global hub for sustainable data centers, taking advantage of the renewable electricity mix. And we will turn Brazil into a biofuels powerhouse: ethanol, biodiesel, HVO, SAF and biogas, promoting the application of the Fuel of the Future Law and offering special financing lines for biogas companies, which turn waste into energy. We will strengthen the Renovabio Program (the national biofuels policy) and extend it abroad, allowing Brazil to sell carbon credits to the world. Cheap energy means a lower power bill at the end of the month and factories that create jobs instead of closing their doors. [p. 52, 53]

In plain language

  • The program proposes a National Energy Security Program focused on refining, processing, outflow and transport of fuels and gas. It provides for allowing the exploration of unconventional gas (fracking), with environmental responsibility, and expanding and modernizing the transmission grid, integrating new renewable sources.
  • The text cites the New Gas Law, of 2021, and proposes continuing along that path. It states that the country wastes part of its pre-salt gas because it has no way to ship it out, and proposes supporting the expansion of the gas network according to demand, with stable rules to attract private investment. It also provides for modernizing refining, moving fuel to the Center-West by modes cheaper than trucks and producing fertilizers from gas.
  • In electricity, it proposes simplifying the power bill, rationalizing charges and cross-subsidies and gradually reducing the CDE and incentivized sources, while maintaining the social tariff. It provides for regulating the sources seeking the lowest price for consumers and creating an energy storage program, with large-scale batteries and other technologies.
  • It cites the reduction in taxes on energy and fuels, detailed in Cheaper Brazil, as a way to attract data centers and artificial intelligence, and proposes making the country a global hub for sustainable data centers.
  • For biofuels (ethanol, biodiesel, HVO, SAF and biogas), it provides for promoting the application of the Fuel of the Future Law, offering special financing lines to biogas companies and extending Renovabio abroad, allowing carbon credits to be sold.

What is not in the program

  • It does not detail the structure, budget or timeline of the National Energy Security Program.
  • It does not say at what pace or to what level the CDE and incentivized sources would be reduced.
  • It does not say which states would be connected to the gas network or by when.
  • It presents no amounts, targets or funding sources for the storage program and the biogas financing lines.
  • It does not detail which rules or safeguards would apply to unconventional gas exploration.