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Brazil Extends Neoenergia Pernambuco’s Power Distribution Concession to 2060 Under Stricter Rules

The decision advances a model that ties extensions to audited performance to speed investment and strengthen resilience.

Overview

  • Neoenergia says the renewed contract allows about R$6–R$6.1 billion in investments to be brought forward through 2029, roughly 50% more than the previous cycle.
  • Minister Alexandre Silveira said only distributors that prove compliance with government criteria will renew, with technical evaluation by Aneel and participation by the TCU.
  • The government projects that the renewal program will enable R$120 billion in power-distribution investment by 2027.
  • The new directives emphasize consumer satisfaction, uniform service quality across concession areas, recovery targets for extreme weather, annual investment plans, network digitalization, and protection of consumer data.
  • Neoenergia Pernambuco became the second distributor approved under the post-decree framework after EDP Espírito Santo, and it serves about 4 million customers across 184 municipalities plus Fernando de Noronha and Pedras de Fogo.