Hogan Lovell OffshoreBook 2023 230809 OnlinePDF - Flipbook - Page 28
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Brazil
them a Preliminary Interference Declaration (Declaração de Interferência
Prévia, or DIP), the document which
confirms that the offshore plant does
not obstruct any activity at sea, are
expected to promote procedures and
norms with the guidelines set forth
in Decree No. 10,946/2022.7 These
entities include several bodies including, but not limited to, the Navy, the
Ministry of Tourism and the National
Agency of Petroleum and Gas.
2.2 Scheme in relation to exclusivity
to construct, own, and operate
a project, as well as to receive
feed-in revenues
The private use of Public Assets (bens públicos)8 occurs when the government grants
exclusive usage rights to a specific individual
or entity, thereby excluding other potential
interested parties. In the context of offshore
wind farms, the installation and operation
of wind turbines necessitates the exclusive
use of the designated location, effectively
preventing other businesses and individual
from accessing or utilizing the location in
question.9
The MME has the authority to grant authorization for the utilization of Public Assets
located in inland waters, territorial seas,
EEZs, and continental shelves for purposes
of offshore wind power generation.10 This
assignment is implemented through the
execution of an agreement with the concessionaire that sets forth certain obligations
and compensation.11
2.3 Incentives for investments
Energy Auctions: The Brazilian government
conducts periodic auctions to contract
offshore wind energy. These auctions offer
long-term contracts for selected projects,
ensuring the sale of the generated energy
and providing a stable and predictable business environment.
Financing and Government Support: The
National Bank for Economic and Social Development (Banco Nacional de Desenvolvimento, or BNDES) provides specific financing for renewable energy projects, including
offshore wind. Additionally, the Brazilian
government has incentive programs and
financial support for clean energy projects,
such as the Climate Fund and the Program
for the Incentive of Alternative Sources of
Electrical Energy (PROINFA).
7 According to article 10 of Decree No. 10,946, the assignment depends on the review of several entities (e.g., IBAMA, the Ministry of Agriculture, the
Navy Command).
8 Public Assets of the Brazilian Government include public land and waters, such water currents on lands under its dominion, or bordering more than
one state or serving as borders with other countries, as well as marginal lands and river beaches; river islands; maritime beaches; oceanic and coastal
islands.
9 At the discretion of the Brazilian Government, properties owned by the Brazilian Government may be assigned, either free of charge or under special
condition, considering the public or social interest and the economic utilization on national interest. If the generation of electric power is considered an
economic utilization of this nature, it is possible to envision the leasing of maritime areas for the purpose of implementing offshore wind farms.
10 The preliminary handover of the area by the Union’s Heritage is a prerequisite for exercising this authority. Prior to transferring the area to the Ministry of Mines and Energy, the Union’s Heritage will evaluate whether it has already been requested or allocated for another project.
11 In the case of allocation for the execution of a profit-oriented project, the lease will be subject to payment, and whenever there are conditions of
competitiveness, the bidding procedures provided by law will be observed.
