Brazil's DG projects may enter special incentives programme

Solar farm in Brazil. Author: Otávio Nogueira. License: Creative Commons, Attribution 2.0 Generic.

September 14 (Renewables Now) - Brazil’s Ministry of Mines and Energy (MME) has announced that distributed generation (DG) projects can now be included in the national Special Incentive Regime for Infrastructure Development (REIDI) and issue infrastructure debentures.

Under REIDI, the schemes will be exempt from paying the PIS/PASEP and COFINS taxes linked to acquisitions, leases and imports of goods and services made within five years from the establishment of the project’s legal entity.

The classification as priority projects allows the systems not only to issue debentures but also grants income tax exemption to the buyers of those debentures.

To make these new policies effective, MME is now working with power sector regulator Aneel to edit the current governmental ordinances in order to establish guidelines on how to frame DG systems as priority projects and how to qualify for the REIDI programme.

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Lucas is based in Brazil. He joined Renewables Now to expand coverage of the Ibero-American market, a highly attractive destination for green energy investment.

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