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Structural measures are expected to be announced in the coming days to mitigate billion-dollar losses in the renewable energy sector, according to a promise by the Federal Government.
The federal government has signaled that it will act urgently to address the crisis caused by cuts in energy generation. renewable energy, which have severely impacted companies in the wind and solar sectors. The promise was highlighted in a message from the Minister of Mines and Energy, Alexandre Silveira, read by the president of the Brazilian Wind Energy Association (ABEEólica), Elbia Gannoum, during an industry event this week.
According to the minister, the government recognizes the financial losses faced by companies and intends to adopt structural measures in the coming days.
Mounting losses challenge renewable energy sector
Since 2023, renewable energy generators, especially wind and solar, have been facing billion-dollar losses due to so-called “curtailments” — cuts in production caused by limitations in the transmission network and low growth in electricity consumption in the country.
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The president of ABEEólica stated that the government will issue an ordinance to formalize an agreement with the generators, aiming to end the legal dispute surrounding the issue and regulate compensation for accumulated losses.
These government actions come amid one of the biggest crises ever faced by renewable energy in Brazil.
Industry estimates indicate that the cuts imposed by the National Electric System Operator (ONS) frustrated around 10% of the expected generation, reaching rates above 60% in regions of the Northeast.
Judicialization and impact on financing of new projects
The affected companies have been suing Aneel, the sector's regulatory agency, seeking compensation for their losses.
Aneel, in turn, argues that fully reimbursing losses could burden energy consumers, as these costs would be passed on to electricity bills.
However, ABEEólica counters, stating that the impact on the tariff would be minimal — around 0,3%.
The prolongation of this uncertainty affects investor confidence.
Representatives from the financial sector warn that the lack of predictability regarding renewable energy cuts is already affecting the payment of debts for some projects and jeopardizing the financing of new long-term ventures.
Short and medium-term actions to stabilize the sector
In addition to the immediate solution via ordinance, the government is studying new operational guidelines to reduce generation cuts during periods of high production, such as the so-called “wind harvest”, which runs from July to September.
This phase is crucial to maintaining the balance of the Brazilian energy matrix, especially during the dry season, when hydroelectric production declines.
The government's initiative also looks to the future: ensuring that the expansion of renewable energy continues, with legal and technical security.
Although short-term measures are welcome, experts warn that more solid results are only likely to emerge in the coming years, as the sector recovers and begins to attract new investment.
Perspectives for the renewable energy sector in Brazil
Despite the government's efforts, the sector still expects a drop in the volume of new wind farms in 2025. According to estimates by ABEEólica, the increase will be just 2 to 2,4 gigawatts, below the 3,3 GW installed in the previous year, which already represented a reduction of over 30% compared to 2023.
Still, experts believe that government actions to address cuts in renewable energy generation could mark the beginning of a new phase of confidence and sustainable expansion in the sector, essential for the country's energy transition.
