TCU assesses energy transition in Brazil and makes recommendations to the government

According to the minister, the lack of clear goals makes it difficult to assess the effectiveness of energy policies
TCU assesses energy transition in Brazil and makes recommendations to the government
Image: Disclosure/TCU

O TCU (Federal Court of Auditors) discussed on Wednesday (27/11) the report of an audit that assessed how Brazil is preparing for the energy transition towards a low-carbon economy. The focus was to analyze public policies and government actions related to the topic.

During the session, the ministers decided to recommend to the MME (Ministry of Mines and Energy) the creation of action plans with defined deadlines to ensure a fairer energy transition. The aim is to prevent tariffs from weighing more heavily on the pockets of low-income families.

The rapporteur for the case, Minister Walton Alencar Rodrigues, highlighted Brazil's challenges in balancing justice and social inclusion in the energy transition. According to him, although there are initiatives such as the Social Tariff and the Light for All Program, the lack of clear goals makes it difficult to assess the effectiveness of these policies.

According to Rodrigues, it is necessary to establish specific objectives to reduce the impact of energy spending on the income of the most vulnerable families and to move consistently towards an inclusive energy transition aligned with sustainable development goals.

TCU sees flaws in the process of opening the free energy market

Problems with subsidies and lack of planning

The audit highlighted problems such as the inconsistency of subsidies, which benefit specific groups, while the majority of consumers, especially the poorest, suffer from higher tariffs.

Another critical point is the lack of sectoral plans to guide the energy transition in the long term. According to the minister, without clear goals and guidelines, it is difficult to plan and implement effective actions to reduce emissions and advance the energy transition.

Financing and emerging technologies

The analysis also showed that Brazil is struggling to align investment needs with available resources. Although there is funding for mature low-carbon technologies such as solar and wind power, investments in fossil fuels still dominate, with 68% of the New PAC resources earmarked for these projects, while only 38% goes to renewable sources.

Newer technologies, such as green hydrogen and carbon farms, are in the early stages of implementation and require greater attention. Areas such as wind and solar energy, on the other hand, are more mature, thanks to public incentive policies.

Challenges in electric mobility

In the mobility sector, the audit highlighted that Brazil still faces challenges such as the high cost of electric vehicles and the lack of adequate infrastructure for recharging. Despite programs that encourage electrification, these factors limit the advancement of sustainable mobility in the country.

The report concluded that, although the federal government has resumed leadership in combating climate change, there is still much to be done to ensure an effective, inclusive energy transition aligned with the needs of the Brazilian population.

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Photo by Wagner Freire
Wagner Freire
Wagner Freire is a journalist graduated from FMU. He worked as a reporter for Jornal da Energia, Canal Energy and Agência Estado. Covering the electricity sector since 2011. Has experience in covering events such as energy auctions, conventions, lectures, fairs, congresses and seminars.

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