Brazil has extended subsidies for coal-fired power generation in the southern state of Santa Catarina for 15 years until at least 2040. Subsidies were originally scheduled to expire in 2027 for all coal-fired power plants in Brazil and in 2025 for three large coal-fired power plants in Santa Catarina. The Brazilian government will continue to purchase power supply from Fram Capital's 857 MW Jorge Lacerda coal-fired power plant located in Capivari de Baixo, in the south of Santa Catarina, at above-market prices. The measure is expected to cost consumers BRL 2.24bn (US$404m) per year, i.e. BRL 840m (US$147m) more than the market cost for renewable power.
Coal accounts for 3% of Brazil’s installed capacity, with 5 GW (end of 2020), and for 3% of power generation.