Rio de Janeiro State regulates Energy Compensation Due in Certain Independent Electricity Generation Projects

On June 27, 2025, Rio de Janeiro Governor enacted Decree No. 49,703 (the “Decree”), establishing compliance procedures for the obligations described in Rio de Janeiro State Law No. 10,456/2024, which relates to energy compensation in electricity generation projects in Rio de Janeiro.

Such compensation is due from companies or consortiums responsible for independent projects of electricity generation plants in the State of Rio de Janeiro using natural gas.

The Decree requires that interested companies make mandatory investments in renewable energy development and energy-efficiency projects within the State.
To this end, companies must initiate a administrative procedure for the execution of the Energy Compensation Commitment Agreement (TCCE), through which the conditions for fulfilling these obligations related to the energy compensation project will be formalized.

Commitment Agreement Conditions:

To enroll to the tax regime, companies must invest at least 2% of the annual variable cost of the natural gas used in:

• Projects for electricity generation from renewable sources with a low environmental impact;
• Energy conservation projects in public buildings or historical monuments;
• Efficient public lighting; or
• Studies on the energy sector, energy transition, renewable energy, and sustainable development.

Compensation Modalities

The Decree provides three methods of fulfilling the energy compensation requirement:

• Direct: The company itself develops and executes the projects, and is responsible for submitting the conceptual design along with a work plan, which must include, at a minimum, the investment amount.
• Indirect: The company carries out projects previously described in public notices.
• Via fund: The amounts are deposited into the Energy Efficiency Fund to finance commissioned projects.

Key Points and Deadlines

• An interested company has 60 days from the acquisition of the natural gas to submit a request to Sea Energy and Economy Secretary (SEENEMAR) to open an administrative proceeding to begin fulfilling the energy compensation obligation.
• The project implementation schedule must not exceed one year, and may be extended for an additional equal period.

If the agreement is not fully executed, the company will be required to fulfill the compensation through a payment to the fund.

For more information regarding this notice, please contact our tax team at: TaxpartnersTC@mayerbrown.com

*This content was prepared with the collaboration of interns Victória Ribas and Larrana Ferraz.