1) Government issues regulations for SAF, CCUS and low-carbon hydrogen
In August, the Federal Government published three decrees long awaited by the market to regulate significant pillars of the energy transition agenda, namely Sustainable Aviation Fuel (SAF), the activities of capture, pipeline transport and geological storage of carbon dioxide (CCUS/CCS), and low-carbon hydrogen.
Decree No. 13,094/2026 regulates the National Sustainable Aviation Fuel Program (ProBioQAV), provided for in the Fuel of the Future Act. The rule governs aspects related to the production, certification, marketing, traceability and use of SAF, and also addresses the Sustainable Aviation Fuel Sustainability Certificate (CS-SAF), an instrument designed to evidence the fuel’s environmental attributes.
Decree No. 13,095/2026 sets out guidelines for the activities of capture, pipeline transport and geological storage of carbon dioxide in Brazil. The rule vests the ANP with authority to license and oversee these activities and provides for the preparation, by the Ministry of Mines and Energy, with support from the EPE, of an indicative plan for infrastructure for the capture, transport and geological storage of CO₂. The regulation creates a legal basis for industrial decarbonization projects and for structuring shared carbon infrastructure hubs.
Decree No. 13,096/2026, in turn, regulates the National Low-Carbon Hydrogen Policy, the Special Incentive Regime for the Production of Low-Carbon Hydrogen (Rehidro) and the Low-Carbon Hydrogen Development Program (PHBC). The text addresses governance, certification, tax incentives, local content, minimum investment in research, development and innovation, and the conditions for project qualification.
The regulatory package reduces significant uncertainties for investment in low-carbon chains and is expected to give rise to a complementary regulatory agenda in the coming months, particularly before the ANP, ANAC, CCEE and Inmetro. For industry participants, the next points of attention will be the secondary regulation, the certification criteria, the interoperability among environmental certificates, eligibility for tax incentives and the building of sufficient demand to make projects viable at scale.
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2) EPE records an all-time high in projects registered for the battery storage auctions
The EPE completed the registration of projects interested in the Capacity Reserve Auctions in the form of Power through battery storage systems. A total of 6,091 projects were registered, adding up to 296,807 MW of capacity, the largest volume of participation ever recorded for auctions in the Brazilian electricity sector.
The substantial number of projects indicates strong market appetite for the entry of storage systems into the electricity mix. Even so, the registered volume does not correspond to the projects actually eligible to take part in the auctions, since the projects will undergo technical review and qualification by the EPE before the subsequent stages. This step consolidates the progress of Brazil’s first cycle of large-scale storage contracting.
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3) Replacing diesel buses with biomethane models could mobilize up to BRL 69 billion
An estimate by ABREN indicates that replacing diesel-powered urban buses with vehicles running on biomethane could mobilize up to BRL 69 billion in investment in Brazil. The figure takes into account the acquisition of new buses, the construction of biogas and biomethane production plants and the expansion of the infrastructure needed to meet the additional demand for the renewable fuel.
The calculation is based on two scenarios. In a conservative scenario, replacing 20,000 buses in the country’s largest cities, investment in vehicles would range between BRL 27 billion and BRL 36 billion. In a more ambitious scenario, replacing 30,000 buses, investment in vehicles could vary between BRL 40.5 billion and BRL 54 billion. In addition, expanding the supply of biogas and biomethane would require further investment estimated at between BRL 10 billion and BRL 15 billion in new plants.
Our partner, Yuri Schmitke, noted that increasing the supply of biomethane would require a broad program to finance new plants. Such credit could be backed by long-term biomethane purchase agreements, of up to 30 years, at low cost. Structuring a national bus replacement program and integrating public policies, involving the Ministries of Cities, of Mines and Energy and of the Environment, could also allow the use of instruments such as green credit lines, subsidized interest rates and funds from the Climate Fund and the BNDES.
The proposal connects urban mobility, waste management, sanitation and decarbonization. Its implementation will depend on the coordinated deployment of plants, distribution networks and refueling points, as well as on coordination with municipalities, transport operators, manufacturers, financiers and biomethane producers.
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4) CNPE is expected to consider creating a working group on waste-to-energy
The Ministry of Mines and Energy has placed on the agenda of the extraordinary meeting of the National Energy Policy Council (CNPE), scheduled for September 2, 2026, the creation of a working group on waste-to-energy. The initiative signals an effort to coordinate existing public policies and address the regulatory, economic and institutional obstacles that still hinder the use of waste as an energy source.
The inclusion of the topic responds to a request submitted by ABREN to the MME. In a letter sent on August 12 to the National Secretary for Energy Transition and Planning, Mariana Espécie, the association proposed the creation of a CNPE working group on waste-to-energy recovery. The suggested responsibilities include defining the conditions for the participation of the urban solid waste source in new energy and reserve auctions, including the source in the PDE and PNE studies, harmonizing the regulatory treatment before ANEEL, ANP, ANA and other sector bodies, the methodology for accounting for avoided methane emissions, and structuring financing lines suited to long-maturity projects.
Our partner, Yuri Schmitke, noted that cross-cutting jurisdiction is today the main obstacle to the implementation of these projects, since each body holds part of the necessary authority, yet there is no single coordinating forum able to unlock regulation, licensing, energy contracting and financing in a coordinated and simultaneous manner. The possible creation of the working group could open the way for greater integration among energy policy, climate policy, sanitation, solid waste, the carbon market and public financing.
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5) Article in Valor Econômico argues for integrating recycling, composting, biodigestion and energy recovery
In an article published in Valor Econômico, our partner, Yuri Schmitke, argued that Brazil should not treat recycling, composting, biodigestion and waste-to-energy recovery as mutually exclusive alternatives. The central thesis is that the country must adopt all of these routes in an integrated way, reserving energy recovery for the fraction of residues that has no technical or economic viability for reuse, recycling or biological recovery.
The article rebuts the notion that waste-to-energy plants would compete with recycling. According to the text, the National Solid Waste Policy already provides for energy recovery only for the fraction that cannot be reused through priority routes, preserving the mandatory nature of separate collection, sorting and material recovery. The same logic applies to the organic fraction, since, where segregation at source, composting or biodigestion is viable, these alternatives should be encouraged, not least because organic waste has high moisture content and reduces the energy efficiency of the plants.
Our partner also stressed that the proper comparison for energy recovery is not solar or wind generation, but the sanitary landfill. From this perspective, the technology should be analyzed as sanitation infrastructure that generates energy as a by-product, reduces fugitive methane emissions, relieves pressure for new final disposal areas, lowers the risk of soil and water contamination and allows firm generation of electricity or industrial steam.
The article also notes that countries such as Germany, Denmark, Sweden, Austria and the Netherlands combine high recycling rates with extensive energy recovery infrastructure, practically eliminating the disposal of waste in landfills. For Brazil, the practical conclusion is that each ton of residue that is not recovered for energy tends to remain a source of methane in landfills or open dumps.
https://valor.globo.com/opiniao/coluna/residuos-gerar-energia-limpa-ou-gerar-metano.ghtml
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6) ANEEL approves preliminary transfer of BRL 5.48 billion to reduce tariffs in the North and Northeast
ANEEL approved the Balanced Limit Tariff Effect of 6.53% and the preliminary distribution of BRL 5.48 billion to the distributors in the Sudam and Sudene areas. The funds arise from the renegotiation of the Public Asset Use charge of hydroelectric plants and will be used to reduce tariffs for consumers in the regulated market in the North and Northeast regions.
The measure gives effect to a tariff relief mechanism provided for in Law No. 15,235/2025, through the injection of funds into the Energy Development Account. This point warrants monitoring because it involves the redistribution of sector funds, regional tariff moderation and effects on the structure of charges borne by consumers.
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7) ANEEL keeps in place the proceeding recommending forfeiture of Enel São Paulo’s concession
ANEEL’s Board denied Enel Distribuição São Paulo’s request to suspend the proceeding recommending forfeiture of its concession agreement. With this decision, the review that may result in a recommendation to the Ministry of Mines and Energy to terminate the concession remains ongoing.
The proceeding stems from the Agency’s assessment of failures in restoring power supply following extreme weather events in 2023, 2024 and 2025, affecting millions of consumers in municipalities of the São Paulo metropolitan region. The discussion goes beyond the individual case of the distributor and is likely to influence the regulatory standard for resilience, contingency plans, crew mobilization and service quality during severe events.
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8) ANEEL keeps the yellow tariff flag in August
ANEEL kept the yellow tariff flag for August 2026, repeating the scenario seen in May, June and July. As a result, the additional charge of BRL 1.885 for every 100 kWh consumed remains in place.
Keeping the flag in place reflects less favorable generation conditions during the dry season, with lower hydroelectric reservoir levels and a greater need to dispatch thermal power plants. The tariff signal maintains moderate pressure on consumers and reinforces the importance of demand management and energy efficiency in the short term.
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9) ANEEL approves the second stage of Transmission Auction No. 1/2026
ANEEL approved the result and awarded lots 7 to 10 of the second stage of Transmission Auction No. 1/2026. The auction, held on July 3 at B3, contracted public transmission service concessions with projects located in Mato Grosso, Mato Grosso do Sul and São Paulo.
The approval completes an essential step toward signing the contracts and implementing the projects, reinforcing the expansion of the transmission infrastructure needed to deliver energy, achieve regional integration and ensure the reliability of the National Interconnected System.
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10) Energy consumption grows 7% in the first half of August
The CCEE reported that energy consumption in the National Interconnected System grew 7.0% in the first half of August 2026, compared with the same period in 2025. The Regulated Market recorded a 10.1% increase, while the Free Market grew 3.1%.
Demand behavior should be monitored together with the dry season and the continuation of the yellow flag. The combination of higher consumption, hydrological constraints and the need for capacity and flexibility resources may pressure generation costs and reinforce the central role of the debates on storage, capacity contracting and transmission expansion.
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11) ANEEL discusses the impacts of the Super El Niño and the resilience of the electricity sector
ANEEL held a meeting to discuss the impacts of the Super El Niño and the ways to strengthen the resilience of the electricity sector in the face of extreme weather events. The meeting brought together government representatives, researchers and industry participants to address the climate effects on the National Electricity System.
The debate reinforces the trend toward incorporating climate resilience as a regulatory variable. For distributors, transmission companies and generators, the topic is likely to affect investment planning, quality standards, oversight, contingency plans and performance assessment in emergency situations.
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12) The 2026 Brazilian Energy Transition Atlas maps 425 state-level initiatives
The Ministry of Mines and Energy published the 2026 edition of the Brazilian Energy Transition Atlas – State-Level Overview, prepared in partnership with the EPE. The tool brings together information on public policies, legislation, projects and regional strengths related to the energy transition, using 2025 as the base year.
The Atlas mapped 425 initiatives across the country and is organized along two axes, the Executive axis, with public policies registered by the states, and the Regulatory axis, with state laws, decrees and ordinances. Among the sources present in the state-level initiatives, solar energy remains the most recurrent, followed by hydrogen, biogas and biomethane. The material can support planning decisions, investment prioritization and the federative coordination of the energy transition.
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13) EPE releases the 2025 Biofuels Outlook, with a focus on biomethane
The EPE released the Biofuels Outlook – Base Year 2025, a technical note that consolidates the main developments, trends and indicators of the Brazilian renewable fuels market. The publication brings together analyses of ethanol, biodiesel, bioelectricity, biogas, public policies and the international biofuels landscape.
Biomethane received specific treatment in the publication, in the context of regulatory progress on the National Program for the Decarbonization of the Natural Gas Producer and Importer and for Biomethane Incentives. The consolidation of sector data by the EPE helps reduce information asymmetry and support decisions on energy planning, financing and the expansion of renewable fuel supply.
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14) Sector plan projects BRL 216 billion in biogas and biomethane investment by 2035
ABiogás presented a plan for the development of the biogas and biomethane sectors, projecting the mobilization of BRL 216 billion in private investment by 2035. The plan also estimates BRL 57 billion per year in additional revenue, the potential to create more than 251,000 direct jobs and the replacement of BRL 42 billion per year in imports, all conditioned on the implementation of measures to expand the production and use of these renewable gases.
The agenda reinforces the effort to position biogas and biomethane as simultaneous instruments of energy security, decarbonization, waste use and reduced dependence on imported fuels and inputs. The effectiveness of these projections will depend on the consolidation of demand, progress on the CGOB, delivery infrastructure, appropriate tax treatment and coordination among the gas, sanitation, waste, agribusiness and transport sectors.
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15) Book on energy security and transition includes a chapter on waste-to-energy
Synergia Editora released the book “Energy Security & Transition – The Energy Evolution – Volume V,” bringing together contributions from specialists on the challenges and opportunities of the energy transition. Among the chapters, the text “Energy Recovery from Urban Solid Waste: Technical Foundations, Climate Benefits and Perspectives for Integrated Waste Management,” written by our partner, Yuri Schmitke, executive president of ABREN and president of WtERT Brazil, stands out.
The chapter addresses the technical foundations of energy recovery from urban solid waste, its climate benefits, its contribution to reducing greenhouse gas emissions and its role in generating renewable energy. The publication also positions energy recovery as a technology complementary to recycling, composting and biodigestion, within an integrated waste management strategy.
