The board of Brazil’s National Agency of Electrical Energy (ANEEL) has approved rules to reduce barriers to the installation of distributed generation of up to 100 KW of power  (micro generation), and from 100 KW to 1 MW of power (mini generation).

The rule applies to generators that use incentivized energy sources (hydro, solar, biomass, qualified cogeneration and wind).

Under this new system, a generating unit installed in a residence, for example, will produce power and the power not consumed will be injected into the distribution system, which will register credit to be applied to the consumption rate of following months.

Public agencies and companies with subsidiaries that choose to participate in the compensation system may also use the exceeding electricity produced in one of their facilities to reduce the bill of another unit.

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