Amazon Energy

The Amazon Energy Program (“Energias da Amazônia”) is modernizing electricity supply for low-income communities in the Isolated Systems of the Legal Amazon—areas that, for technical or economic reasons, are not connected to the National Interconnected System (SIN).

Most residents still rely on small local diesel-fueled power plants, facing instability and inefficiency from this highly polluting and costly option. The Legal Amazon includes nine states: Acre, Amapá, Amazonas, Mato Grosso, Maranhão, Pará, Rondônia, Roraima, and Tocantins.

The program benefits about three million people in 211 locations. An estimated R$ 5 billion in investments will be required to make this transition feasible, with the potential to cut oil dependency by 70% by 2030. In 2022, diesel accounted for 80% of generation in the region, with high energy losses.

The initiative enhances energy security and resilience, improves the quality of public services, and supports socioeconomic development, while cutting carbon dioxide (CO₂) emissions—the main driver of global warming.

By advancing the energy transition in the world’s largest tropical forest, the program provides communities with clean and renewable alternatives, either through interconnections when viable or through local generation and storage solutions.

Replacing or reducing diesel use will lower greenhouse gas (GHG) emissions. By 2030, nearly 1.5 million tons of CO₂ emissions can be avoided.

The program was established under Decree No. 11,648 of August 16, 2023, signed by President Luiz Inácio Lula da Silva and Minister Alexandre Silveira of Mines and Energy.

Its official launch took place on August 4, 2023, with the integration of three municipalities in Amazonas and Pará — Parintins, Itacoatiara, and Juruti — into the National Interconnected System, benefiting more than 300,000 people.

Among the program’s initiatives is the auctioning of isolated systems for contracting electricity supply to approximately 170,000 people across ten Legal Amazon locations.

INTERCONNECTIONS ON MARAJÓ ISLAND FOR COP30

Interconnection projects in Pará, on Marajó Island, are underway and scheduled for completion before COP30:

COP30 Package, Marajó Island – Interconnection of locations on Marajó Island and surrounding areas near Belém to be completed before COP30.

Interconnections in progress, scheduled for 2025 – Aveiro, Oeiras do Pará, Cotijuba, Afuá, and Chaves. Required investments: R$ 334.2 million.

Population to benefit – 126,000 inhabitants, with the decommissioning of 14.4 MW of thermoelectric plants (UTEs), resulting in avoided costs of R$ 121.2 million per year and avoided CO₂ emissions of 43,300 tons annually.

Completed interconnections in Pará (2023–2024) – Juruti and Santa Cruz do Arari, supported with R$ 75.6 million from CCC funds, authorized by the MME.

By the end of 2029, 33 isolated systems are expected to be interconnected with the SIN, according to data from distributors in the Isolated Systems Planning – 2024 Cycle.

INVESTMENTS ANNOUNCED IN NOVEMBER 2024

On November 22, 2024, the MME announced R$ 824 million in investments for regional development through Energias da Amazônia, distributed as follows:

Sisol 2025 Auction

Held in September 2025, with R$ 312 million in investments, to serve 30 thousand people in isolated locations in the Amazon region. Lot 1 will serve Cabori, Camaruã, Limoeiro, Novo Remanso and Parauá, in Amazonas, and Lot 3 will serve Jacareacanga, in Pará

The locations will be divided into two lots.

A key innovation is requiring 22% of renewable energy in the proposals to be presented, a measure in line with the goals stipulated by Energias da Amazônia

Proposals must also account for the carbon shadow price and present a logistics plan for extreme droughts.

Hybridization solutions ware encouraged, combining solar with storage and thermal generation.

It was the first auction in the sector with winning hybrid projects associated with batteries (BESS). In Jacareacanga (PA), the installation of 30 MW of battery storage and 18 MW of solar generation was contracted, a solution that is equal to the largest battery in Brazil, in Registro (SP)

Winning projects must be operational by December 2027.

Public Call for Projects

In September were selected R$ 510 million of investment in isolated systems, with a public call for proposals issued on November 22, 2024, to reduce electricity generation costs in the Amazon.

14 strategic projects were approved, with an investment of R$ 510 million, reinforcing the commitment to energy transition and regional development.

Focusing on efficiency and sustainability, 90% of the funds allocated will be applied to projects for the installation of photovoltaic solar plants and storage systems in locations such as Tefé, Tabatinga and Benjamin Constant, in Amazonas.

R$ 11.7 million of the resources were allocated to specific solutions for communities in Roraima, such as Santa Maria do Boiaçu and Vila Caicubi, which will now have a structural solution for generating electricity.

Initiatives to modernize public lighting are also planned in Oiapoque (Amapá) and other municipalities, with “retrofitting” of lamps and training of local technicians.

These actions not only reduce costs, but also generate social benefits, stimulating regional development, entrepreneurship and improved quality of life.

Funds come from the Pró-Amazônia Legal program, managed through Energias da Amazônia.

The call prioritizes initiatives that lower generation costs, expand access, and integrate renewables, energy efficiency, and loss reduction.

Selection criteria included: reducing CCC costs, cutting greenhouse gas emissions, delivering socioeconomic benefits, and ensuring public-private co-financing.

Sixty-four proposals were submitted; 59 deemed valid, totaling R$ 5.6 billion in investments, of which R$ 2.1 billion would come from Pró-Amazônia Legal. Among valid proposals, 26% focus on energy efficiency and 64% on renewable energy for contracted power plants.

PROGRAM GUIDELINES

The Amazon Energy Program is guided by the following principles:

Valuing the region’s available energy resources, especially renewables.

Promoting energy efficiency and reducing supply losses.

Enabling interconnection of isolated systems to the SIN when technically, economically, and environmentally viable.

Ensuring a balance between supply reliability and affordable rates.

Improving transparency and quality of data on electricity supply and fuel consumption.

Encouraging technological innovation and service quality improvements.

Promoting social participation in planning and implementation.

Coordinating with other government programs to integrate policies and actions.

IMPACT ON ENERGY CONSUMERS’ RATES

A major benefit is reducing the charges borne by all Brazilian electricity consumers through the Fuel Consumption Account (CCC).

Electricity generation costs for serving these communities reached R$ 12.1 billion, with a direct CCC impact of R$ 10 billion, based on reimbursements to distribution concessionaires, as processed by the Electric Energy Trading Chamber (CCEE).

CCC resources come from the Energy Development Account (CDE), which finances public policies, primarily by subsidizing energy tariffs.

Thus, CCC costs affect the CDE budget and, consequently, the electricity bills paid by consumers nationwide.

NUMBERS

211 locations in the Legal Amazon not connected to the National Interconnected System (SIN), according to the 2022 baseline diagnosis.

3.1 million residents currently benefiting.

1.5 million tons of CO₂ avoided by reducing or replacing diesel as the primary source of electricity generation in the Amazon.

INITIAL RESULTS

In 2024, diesel accounted for 67% of generation in isolated systems, a 13% reduction from 80% in 2022.

36 locations are no longer classified as isolated systems due to completed interconnections or migration to LPT service, leaving 175 locations still isolated (compared to 211 in 2022).

DATES

08/16/2023 – Creation of the Amazon Energy Program by Decree No. 11,648.
08/04/2023 – Inauguration of the interconnection of Parintins, Itacoatiara, and Juruti (Amazonas) to the National Interconnected System (SIN).

02/29/2024 – Launch of the Isolated Systems Monitoring Portal (Pasi), a partnership between MME and EPE, designed to centralize planning data and unify information.

11/21/2024 – Announcement of R$ 820 million in investments for the 2025 Sisol Auction and public call for projects. Includes site visit to Cotijuba (PA).

04/15/2025 – Publication of data on 241 registered projects, totaling 1,870 MW of power, submitted for participation in the 2025 Sisol Auction. More than half involve hybrid plants (thermoelectric + solar PV, with or without storage).

06/02/2025 – MME announces preliminary results of the call for projects: 13 proposals selected to receive investments aimed at reducing generation costs and improving service in isolated Amazon systems.

09/03/2025 – MME announces the final result of the call for projects, with 14 proposals and R$ 510 million in investments.

Published: November 12, 2025

Photo credit: Ricardo Botelho (MME)