The government of the State of São Paulo published this Tuesday (22) a decree that changes the ICMS regulation for activities with biogas and biomethane, aiming to encourage the use of renewable fuels and increase competitiveness in the São Paulo market.
The São Paulo decree provides for the deferral of ICMS for internal operations with biogas and biomethane when the gas is consumed in the industrialization process at an electricity generating plant.
In this case, the tax is levied only at the moment when the energy leaves the industrial establishment, allowing greater financial strength for the producing companies, said the São Paulo government.
With the change, the perspective is that distributed energy generation plants powered by biogas and biomethane will benefit, said the president of the Brazilian Association of Distributed Generation (ABGD), Guilherme Chrispim.
“From now on, with this benefit, the tendency is for São Paulo to overtake Minas Gerais by the end of 2023 and take the lead among the States with the highest installed capacity in own energy generation”, said Chrispim.
On Tuesday, the São Paulo government also signed a cooperation agreement with the Absolar association, aimed at harnessing photovoltaic solar energy, purchasing energy from the free market, among others.
According to Absolar, São Paulo is among the Brazilian states with the highest installed power of solar energy in its own generation on roofs, small businesses and land, around 2 gigawatts (MW) in operation.
Source: CNN Brasil
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