Brazil Publishes Decree Overhauling Proinfa, Extending Renewable Contracts Under New Terms

Overview

• A presidential decree published on January 27 assigns ENBPar, replacing Eletrobras, to operationalize contract extensions for Proinfa projects.
• Generators may extend contracts for up to 20 years at their discretion, with an option to reduce contracted volumes at the time of signing.
• ENBPar must issue a model addendum and implementation schedule within 30 days, with addenda due by March 31, 2026 and financial effects starting the following month.
• Reference prices are based on the 2019 A-6 new-energy auction and will be adjusted for inflation to the date of addendum signature.
• Opt-in generators will forfeit transmission and distribution tariff discounts, while the government projects up to R$2.2 billion in savings from 2026 to 2031 and roughly 26% lower contract prices; the decree preserves hydrological-risk repactuation and drew support from Abragel.