New bill to create incentives for biomass production

By Power Engineering:

Brazilian distributors will be obligated to contract at least 250MW annually of biomass-generated energy under a proposal being discussed by congress.

The purchase of electric power at auction would be made for a minimum period of 25 years starting from 2014, according to a government note.

To participate in concession auctions, distribution license holders must attain 70% local content in their equipment inventory and service contracts.

“Among organic materials that are possible biomass sources include urban waste, sugarcane bagasse as well as agricultural and forest residues,” the note said.

The proposal, initiated by federal deputy Irajá Abreu (PSD-TO), also establishes criteria for the expansion of biomass generated power in the national interconnected system (SIN).

Concessionaries will be compelled to call an annual tender for the acquisition of biomass-generated energy from plants with a capacity inferior to 1MW… Read more

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