Excluding natural gas from the Redata regulations could impact electricity bills by BRL 7 billion, warns Abraget.
The Brazilian Association of Thermoelectric Generators (Abraget) has expressed deep concern over the imminent publication of the decree establishing the Special Taxation Regime for Data Center Services (Redata). The core concern lies in the potential exclusion of natural gas as an eligible energy source for these developments, a move that, according to the entity, compromises the stability of the electricity supply.
The association argues that natural gas plays a crucial role in providing firm and reliable energy, complementing the intermittency of renewable sources. In a scenario of growing demand for cloud services and artificial intelligence applications, the continuous operation of data centers requires a highly reliable energy supply, something that natural gas, with its predictable availability, is able to guarantee.
Natural Gas: A Pillar for Data Center Reliability
Abraget points out that the inclusion of natural gas in Redata is not limited to energy security, but also optimizes the logistics and economic feasibility of projects. The exclusion of this source would represent a setback regarding what was deliberated by the National Congress, with association estimates pointing to an increase of around BRL 7 billion in electricity costs for consumers.
The association highlights that the regulatory proposal, by prioritizing intermittent sources and failing to consider the complementarity of gas, ignores the need for stable energy generation to meet the demands of data processing units.
Transmission Challenges and Economic Viability
Another critical point raised by Abraget is the concentration of renewable generation, mostly in the country’s Northeast region. This geographical distribution requires substantial investments in transmission infrastructure for energy to reach the South and Southeast regions, where the demand for data centers is high.
If passed on to consumers, such investments could make the installation and operation of data centers in these regions unviable. Abraget therefore advocates for the construction of a more balanced energy matrix that takes advantage of the specific attributes of each energy source, ensuring the necessary complementarity and energy security. The entity reiterates that natural gas is fundamental for the sustainability and success of data center projects in Brazil.
