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Restrictions on renewable energy transmission are impacting the sector and generating financial losses. Companies are seeking compensation and new investments are trying to solve the problem. The government is planning measures to improve infrastructure in the coming years.
The renewable energy sector: advances and difficulties
The cuts in the renewable energy generation have been decreasing. However, the impact on companies and investors is still significant..
Additionally, we bring transmission barriers, legal disputes and uncertainties about financial compensation continue to influence the direction of the sector.
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From 2022, experts warn of growing challenges.
According to Aneel, the first signs of overload in the transmission network began to affect the Northeast at the end of 2023.
At that time, the National Electric System Operator (ONS) recommended emergency actions to mitigate the risks of overload.
Reduction of cuts and impact on energy production
Renewable Energy Cuts Drop, But Sector Still Struggles with Obstacles
Em January 2025, the cuts in renewable energy generation in Brazil decreased to 10,2% of the total produced.
In other words, a slight improvement from the 11,5% recorded in December 2024.
The decline occurred mainly in the sources of wind power e solar energy, which traditionally face limitations due to outdated transmission infrastructure.
In the case of wind power, for example, the cuts went from 9,5% to 9,3%.
Meanwhile, solar energy presented a more significant reduction, from 17,8% to 12%.
Despite this improvement, the sector still accumulates financial losses. The transmission structure does not keep up with the growth in energy production.
Furthermore, the increase in energy consumption did not advance at the same rate as expansion of renewable sources, which represents a extra challenge for investors.
Regulation and financial challenges
Legal Conflicts and the Search for Compensation
The dispute between the renewable energy generators and National Electric Energy Agency (Aneel) remains intense.
After all, companies in the sector demand compensation for losses in generation.
companies like Equatorial, CPFL, Eneva and Alupar reported improvement in your financial results due to the decrease in energy curtailments.
On the other hand, Auren, Engie and Serena were most affected by the generation cuts..
Em August de 2024, the Brazilian Solar Energy Association (ABSOLAR) and Brazilian Wind Energy Association (ABEEólica) took legal action to pressure the government and the Aneel for compensation.
Associations reported billions in financial losses caused by restrictions on ONS.
Transmission infrastructure and its failures
Impacts of Restrictions and Measures for Solution
Em January 2025, the cuts of generation due to infrastructure unavailability rose to 6% of total production, up from 0% in December 2024.
The problem arose because of the power transmission bipole failure that connects the Pará to Rio de Janeiro.
Consequently, this restriction allows financial compensation for undelivered energy.
Additionally, we bring some plants are already able to request compensation, according to the assessment of the Ministry of Mines and Energy.
Em October 2024, a meeting between the Aneel, ONS and companies in the sector defined that new investments in the transmission network should be accelerated.
Estimates indicate that, between 2025 and 2027, structural improvements will significantly reduce these problems.
Expectations and the future of renewable energy
Investments and Perspectives for the Coming Years
Em 2024, investors warned that the operational limitations imposed by the National Electric System Operator (ONS) compromised the sector's profitability.
As a result, many have revised their expansion projects and strategies.
The lack of expansion of transmission lines No. Northeast represents a critical bottleneckAs prevents the energy produced from reaching the Southeast efficiently.
The federal government, through the National Energy Plan 2050, projects investments exceeding $ 200 billion to strengthen the transmission infrastructure in the coming 25 years.
According to National Bank for Economic and Social Development (BNDES), the new projects will prioritize the connection of wind and solar farms to the National Interconnected System (SIN).
Even with the reduction in cuts in renewable energy generation, Brazil still needs to overcome structural challenges in the transmission grid.
Additionally, we bring It is essential to balance energy supply and demand.
According to experts at Brazilian Institute of Energy (IBE), emergency actions will be essential in 2025 to avoid future energy crises.
