Contributor
Juridical Safety and Alternative Sources of Energy*
*Fernando Henrique Cunha Lawyer specialized in infra-structure at Emerenciano, Baggio and Associates.
Nowadays, the field of alternative energy sources is undergoing great expansion and changes in Brazil. If, on one hand, non-conventional energy production possibilities are increasing, bringing the country to a position among world leaders in this field, on the other hand, certain legal and juridical aspects did not follow such advances, which may cause some insecurity to the investors.
Legislation on the theme, although still insipient, cannot transmit the safety necessary to the investors so they may feel safe to contract. Even interesting initiatives, such as PROINFA, Programa de Incentivo a Fontes Alternativas [the Incentive Program to Alternative Sources], from the Ministry of Mines and Energy, are still timid in face of the necessary demands in order to guarantee large sustainability to the sector. In addition, contractual relations for the sector development and projects operation (as it is, by the way, with a great part of infra-structure projects in Brazil) may be the target for a rational analysis and also, in many cases, for a total re-planning.
Complex and continuous contracts, such as the ones of infra-structure, especially in the development sectors, present several critical points, from the traditional environmental, labor and tax-related issues to complex issues related to risks mitigation, parties’ duties, guarantees and scope, cost and term re-negotiations, among others.
Considering such scenario, the best way to guarantee contractual safety is through the elaboration of a planned contractual structure and project juridical management, both of them aiming to mitigate risks, reduce future costs and relationship conflicts between the parties, so that they may enjoy the good moment the alternative energy sector is providing nationwide.
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