Lula Signs Decrees Opening Power Market to Households and Backing CCS, Hydrogen and SAF

Overview

• The decrees, signed Wednesday, August 12, create a phased opening of Brazil’s free electricity market with low‑voltage commercial and small industrial customers eligible from 25 November 2027 and residential customers from 25 November 2028.
• To protect supply during the transition the government created a Supridor de Última Instância that distributors will perform until 31 December 2030 and that will shift to other agents once regulators set rules.
• One decree establishes a regulatory framework for carbon capture, transport and geological storage that requires ANP authorization for projects and mandates at least 20 years of post‑closure monitoring and national infrastructure planning by MME/EPE.
• The package sets up the Brazilian Hydrogen Certification System (SBCH2) to certify low‑emission hydrogen and creates the ProBioQAV program with a CS‑SAF Book & Claim mechanism and SAF emissions targets for 2027–2037.
• Major implementation details — consumer comparison tools, migration and return procedures, tariff treatment, portabilidade and safeguards against commercializer insolvency — will be defined by Aneel, ANP, CCEE and Anac in coming months and will determine how much consumers actually save and how fast new industries scale.