The strategic role of Energy Cooperatives in the just energy transition and tax incentives for their promotion in Brazil

Abstract

This study examines the relationship between the regulatory framework for distributed generation in Brazil and the economic, regulatory, and tax challenges faced by energy cooperatives in the context of a just energy transition. In addition, it contextualizes the rapid expansion of distributed generation, marked by the predominance of solar photovoltaic sources and the need for legal instruments capable of promoting productive inclusion, sustainability, and democratization of access to energy. The main objective of the study is to analyze how the Legal Framework for Distributed Generation and extra-fiscal policies can boost the cooperative sector, identifying barriers and opportunities for institutional strengthening. Regarding the methodology employed, a literature review and normative analysis were used, with an emphasis on regulatory documents, sector reports, and studies on environmental taxation and cooperative models. In this sense, the results indicate that, although the regulatory framework has increased legal certainty and recognized the role of cooperatives, obstacles such as financing difficulties and (extra)fiscal insecurity persist, especially in the context of brazilian Tax Reform. Finally, the study concludes that consistent extra-fiscal policies, combined with institutional integration and tax harmonization, are essential to consolidate energy cooperatives as an instrument of social justice and a strategic vector for energy transition in Brazil.