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Instituto Arayara vs. Adasa and Termo Norte Energia Ltda (Water Resource Concessions and Installation of a Thermal Power Plant) - decision

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Instituto Arayara vs. Adasa and Termo Norte Energia Ltda (Water Resource Concessions and Installation of a Thermal Power Plant) - petition

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Instituto Arayara vs. Adasa and Termo Norte Energia Ltda (Water Resource Concessions and Installation of a Thermal Power Plant) - appeal

Filing Year For Action

In March 2025, the Arayara Institute filed a Public Civil Action (ACP) with a request for urgent relief against the Regulatory Agency for Water, Energy and Sanitation of the Federal District (ADASA) and the company Termo Norte Energia Ltda.. The plaintiff seeks the cancellation of the grants of rights to use water resources granted by ADASA in favor of the defendant company for the collection of water and discharge of effluents into the Melchior River, within the scope of the project to install a natural gas thermoelectric plant in Samambaia, in the Federal District. In summary, the plaintiff claims that ADASA used outdated data to analyze and issue the grants, and ignored the alarming diagnoses of water availability in the Federal District, which is affected by climate change, including the record drought that occurred in 2024. It is argued that the generation of energy through thermoelectric plants consumes and pollutes a large amount of water, potentially affecting the water supply in the Federal District. Therefore, the implementation of power plants without a thorough, updated assessment of water and environmental impacts is contrary to the principles of precaution and prevention, as well as the primacy of environmental protection over economic interests. The plaintiff requests, as a preliminary injunction, the immediate suspension of ADASA's grant no. 337/2023 and no. 33/2024, to prevent the irregular continuation of the environmental licensing of the project. On the merits, it requests the confirmation of the injunction and the definitive cancellation of said grants.
In its defense, ADASA supported the legality of the issued grants, clarifying that they were preliminary permits of a merely indicative nature, insufficient to authorize the installation of the project. It also noted that Instituto Arayara did not present technical evidence to support the allegations made, relying exclusively on outdated and superficial data. Therefore, it requested that the case be dismissed in its entirety.
In addition to the reasons given by ADASA, Termo Norte Energia, in its defense, highlighted the relevance of the thermoelectric plant project for diversifying Brazil's energy matrix and increasing electricity supply in the Midwest. Furthermore, it highlighted that natural gas is recognized as a fuel for the energy transition/green energy, as it has a lower impact than fossil fuels. Therefore, it requested that the case be dismissed in its entirety.
In June 2025, the court granted the injunction to suspend the effects of the prior authorizations issued by ADASA. The court disagreed that natural gas is a clean source of energy, indicating that the implementation of a thermoelectric plant does not contribute to the decarbonization of the Brazilian energy matrix and to the efforts to reduce greenhouse gas (GHG) emissions undertaken by Brazil under the Paris Agreement. It also states that since the potential impact of the plant on the environment is evident, especially concerning the possibility of substantial GHG emissions, the case should be examined in light of the National Policy on Climate Change (PNMC). Therefore, it determined the suspension of the authorizations so that it is possible to verify, cautiously and safely, the true environmental impacts of the thermoelectric plant project and the validity conditions of the relevant environmental administrative acts.

Instituto Arayara vs. Adasa and Termo Norte Energia Ltda (Water Resource Concessions and Installation of a Thermal Power Plant)

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Policy instruments are techniques or tools used by governing authorities to promote certain policies in order to achieve predetermined goals. Put simply, instruments are how a government tries to achieve its goals, with this taxonomy being focused on national policy instruments.

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Renewable energy means all forms of energy produced from renewable sources in a sustainable manner.

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Area of the economy in which actors engage in identical or related activities.

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The activities of industries involved in the production, distribution, and sale of energy, including electricity, gas, and renewables.

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Electrical energy generated from mechanical devices driven by flowing fresh water.

Kinetic energy of airflow transformed into useful energy, mostly electrical energy.

This sector involves the distribution, treatment, and conservation of water resources.

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Instituto Arayara vs. Adasa and Termo Norte Energia Ltda (Water Resource Concessions and Installation of a Thermal Power Plant) - decision

Target

Risk

Impacted group

Just transition

Renewable energy

Fossil fuel

Greenhouse gas

Economic sector

Adaptation/resilience

Finance