Political, social, economic and regulatory scenario

All of the Company’s processes and activities are carried out in strict compliance with current internal policies, regulations and standards, thus demonstrating integrity, transparency and compliance with ethical and legal obligations. Norte Energia uses a continuous monitoring and evaluation system for its practices to ensure appropriate identification and treatment of potential deviations. 

These figures demonstrate our ongoing pursuit of operational excellence and the country’s energy security, and are anchored in a robust maintenance and technical expertise plan to restart the machinery/equipment after unforeseen outages as quickly as possible. With an Availability Factor above 98% in the last three years, Norte Energia exhibits consistent performance, reinforcing its strategic role in the transition to a cleaner, safer and more efficient energy matrix. 

Challenges for hydroelectric plants 

Hydroelectric plants continue to be the main source of installed power in Brazil, but with the increasing inclusion of intermittent sources, such as solar and wind power, its role in the Brazilian Electric System is evolving. To ensure a balanced energy matrix, these plants frequently adjust their operations, reducing generation in periods of low demand and increasing it during peak hours. This new scenario impacts the remuneration of HPPs, requiring adaptations to the management model and regulatory structure to ensure the sustainability of the sector.  

Awareness and advancements 

The Brazilian National Power Agency (ANEEL), the Ministry of Mines and Energy (MME) and the National Electric System Operator (ONS) are aware of the challenges arising from the evolution of the power sector, while the regulatory update process is no longer able to capture the dynamism of these relations. To ensure the sector’s sustainability and the security of energy supply, it is critical to recognize and implement due remuneration for all the attributes delivered by HPPs, promoting a balanced regulatory environment adapted to the new reality of the Brazilian electricity system. 

Engagement in the planning and regulation of the electricity sector 

We understand the importance of actively participating in discussions on energy planning and regulatory developments related to electricity generation and trading. In 2024, Norte Energia was engaged in several actions and processes, including:  

• A contribution of BRL 16 million to the development of 16 research, development and innovation projects, highlighting the completion of the Poraquê Catamaran, the first fully electric and sustainable passenger transport vessel in the Amazon region, representing a significant advance in technological development aimed at low-impact river mobility in Brazil;
• Conducting studies on proposals to improve ancillary services provided by generators to the ONS, that is, complementary services that ensure the proper functioning of the electrical system;
• Participation in the Technical PMO/PLD (Monthly Energy Operation Program/Differences Settlement Price) Committee, coordinated by the ONS and the Electric Energy Commercialization Chamber, with studies conducted by technical groups on distributed generation, power plants, variable costs, governance, hydrometeorological data, hydrological scenarios and hydraulic restrictions;
• Participation and implementation of task force studies involving the improvement of energy optimization models;
• Validation of new versions of energy optimization models.

Furthermore, the Company played an active role in regulatory discussions and submitted contributions to several public consultation processes, both by ANEEL and the Ministry of Mines and Energy.  

The Company’s most prominent activities include participating in the preparation of ANEEL’s Regulatory Agenda for the 2025/2026 biennium. Also noteworthy is the work on topics such as the provision of ancillary services, operation of thermoelectric plants, and improvement of the rules applicable to small-scale electricity generation systems (distributed micro- and mini-generation). The Company also acted through trade associations (namely, Abrage, Apine, Abiape, ABCE and Abraceel) other relevant discussions in the sector, such as the Public Consultation on the Capacity Reserve Auction and, in the legislative sphere, Provisional Presidential Decrees (MP) 1212/2024 and 1232/2024).