Overview

• Relator Eduardo Braga said his report on MP 1.304/2025 will reallocate subsidies already embedded in tariffs to new entrants and technologies such as energy storage without creating new incentives.
• He stated that subsidies guaranteed in existing contracts will be preserved and that the CDE would be frozen with inflation indexation to contain costs.
• The measure under discussion proposes a cap for the CDE and has been reported to consider contracting hydropower plants of up to 50 MW.
• Braga argued that stronger price signals should encourage storage investments and reduce curtailment that has hit wind and solar generation.
• The mixed committee continues public hearings after receiving more than 400 amendments, with Deputy Fernando Coelho Filho as correlator and Braga planning to draft his report next week.