en.Wedoany.com Reported - On July 12, the National Secretariat for Energy Transition and Planning (Secretaria Nacional de Transição Energética e Planejamento), under the Ministry of Mines and Energy (MME) of Brazil, recently approved three power generation projects for inclusion in the Special Incentive Regime for Infrastructure Development (Reidi), which suspends the collection of the Social Integration Program (PIS) and the Social Security Financing Contribution (Cofins).

The three projects have a combined installed capacity of 119.2 MW, with an estimated total investment of R$554.09 million (including PIS/Pasep and Cofins). After applying the tax incentives, the estimated investment is reduced to R$502.84 million, a difference of approximately R$51.25 million.

The largest project is the UHE Salto Weissbach hydroelectric power plant located in Blumenau, Santa Catarina, to be built by Celesc Geração. The plant will install two 11.5 MW generating units, with a total installed capacity of 23 MW, and is expected to be completed by July 2029. The project has an estimated investment of R$283.86 million (including PIS/Pasep and Cofins), with a tax-exempt investment amount of R$257.6 million.

The Tanque Novo Sul and Tanque Novo Norte solar power plants were also approved. Both plants are part of the Complexo Tanque Novo Energias Renováveis, located in Lagoa do Barro do Piauí, Piauí, and are managed by CGN Brasil. Each project has an installed capacity of 48.118 MW, distributed across 14 generating units, and is expected to begin operations in June 2028. UFV Tanque Novo Sul has an estimated investment of R$132.83 million (including PIS/Pasep and Cofins), with a tax-exempt amount of R$120.54 million. UFV Tanque Novo Norte has an estimated investment of R$137.41 million (including PIS/Pasep and Cofins), with a tax-exempt amount of R$124.70 million.

According to relevant decrees, companies must notify the Federal Revenue Service of the start of commercial operations within 30 days after the National Electric Energy Agency (Aneel) issues the dispatch order. If the related concession is revoked, the Reidi eligibility may be canceled.