A 36% drop in the Luz para Todos budget for 2027 sparks debate over the program’s expansion.
The Luz para Todos program, crucial for expanding electricity access in rural and remote areas of Brazil, will face a significant reduction in its funding for 2027. The Ministry of Mines and Energy (MME) presented a budget proposal of R$1.61 billion from the Energy Development Account (CDE) allocated to the program next year.
This amount represents an approximate 36% decrease compared to the R$2.5 billion approved for 2026.
The proposal, released for public consultation via MME Ordinance No. 936, indicates a decrease not only in financial contribution but also in the program’s reach. The goal for 2027 is to serve 67,805 new consumer units, with 34,969 in rural areas and 32,836 in remote regions of the Legal Amazon.
For 2026, the target was 124,744 new connections.
Reduced Targets and Justifications
The nearly 46% drop in the number of new connections projected for 2027 compared to 2026 is attributed by the MME to the current stage of contract execution. The expectation is that many projects are progressing to intermediate and final phases, which would result in fewer new connections being initiated.
In total, the 2027 plan anticipates the financial and physical impact of 31 contracts. Of these, 16 are aimed at rural areas and 15 at the Legal Amazon.
Fifteen contracts are expected to conclude financially next year, indicating that the budget will be focused on the completion of projects already underway.
Pará and Amazonas Lead in Budget and Service
States like Pará and Amazonas will receive the majority of the resources proposed for 2027. Pará is expected to receive R$417.4 million for 19,000 connections, while Amazonas will have R$395.1 million for 19,306 consumer units.
Together, these two states account for over R$812 million, nearly half of the total budget proposed for the program. Other states such as Bahia, Piauí, and Acre will also receive allocated funds.
The Luz para Todos program, relaunched in 2023 and extended until the end of 2028, has been crucial for bringing energy to underserved populations.
The budget reduction raises questions about the pace of electricity access expansion and the achievement of universalization goals, especially given the expansion of the priority beneficiary group, which includes low-income families, indigenous communities, quilombolas, among others.
