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Wind and solar energy companies face multi-million dollar fines for exceeding the generation capacity of the electrical system. Penalties for excess production already total R$1 billion.
The wind and solar energy sectors are caught in a rather curious contradiction. Supported by subsidies, both renewable sources have been expanding their share of the Brazilian electricity grid exponentially. However, wind and solar companies are fined for generating energy beyond the capacity of the electrical system. Learn more about how this fine for producing energy works.
Billion-dollar fine for generating energy beyond the capacity of the electrical system and scares companies in the renewable sector
In 2024 alone, the expansion of electricity supply from wind and solar companies represented 93% of the country's total of 7 gigawatts (GW), through 93 new photovoltaic plants and 90 wind plants. In contrast, Both segments have been fined for producing energy that amount to R$1 billion because the electricity transmission system cannot handle the supply of electricity generation connected to the system by these two renewable sources.
With this, the National Electric System Operator (ONS) is obliged to cut generation at certain times so as not to overload the transmission system.
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These cuts, called constrained-off, by the sector, are carried out without warning or scheduling, impacting wind and solar companies, which have energy supply contracts that they cannot fulfill and are forced to buy energy on the free market, at a higher cost, to serve customers.
Solution found for the fine for producing energy
Many cases have been taken to court, with companies demanding reimbursement of fines for producing energy, which has put pressure on authorities in the electricity sector to find a solution. The greatest losses are in the wind energy segment, which amounts to R$700 million. The remaining R$300 million will be paid by solar plants.
To avoid this fine for generating energy beyond the capacity of the electrical system, an ONS rule that came into effect on September 17, initially in the states of Ceara and Rio Grande do Norte, with the possibility of being expanded, was well received by agents in the sector.
In general terms, it stops concentrating power generation cuts in a few points and with a larger volume, which penalized some plants more, distributing these cuts in a more dispersed manner and across a greater number of units. Experts point out this contradiction in the fine for generating energy beyond the capacity of the electrical system, one of the biggest bottlenecks in the current electrical sector.
Main problems in the electrical system
Strictly speaking, there are two overlapping problems for wind and solar companies. One of them is the excess supply of energy generation connected to the electrical system by these two renewable sources, which has not been accompanied by growth in demand or the capacity to transport energy to consumer centers.
The other problem is geographic, since a large part of wind and solar generation is concentrated in the Northeast of the country, while the consumption of this energy occurs, to a greater extent, in the Southeast. If the consumption of this electricity by wind and solar companies were close to the place of consumption, there would be no major consequences.
Since energy is transported over long distances by transmission lines, the so-called power lines, the ONS is obliged to cut generation at certain times, since the increase in generation was not accompanied by an increase in the installation of power lines. There are plants that had 70% of generation cuts in one month and were fined for generating energy beyond the capacity of the electrical system.
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Reading this information we see how our government is not concerned with global warming targets and penalizing those who have invested so much and created so many jobs. Only energy production companies need to have a dialogue to have better control over distribution.
With the drought we are experiencing, less energy could be generated by hydroelectric plants and transmission lines could be freed up for wind and solar energy. Thus saving water from the reservoirs.
Your idea is wonderful, but the government doesn't care about it.
The end consumer will pay for the flags one way or another.
Power transmission lines do not give votes.
Period, this is Brazil my dears.
And worst of all, today they are privatized, and there seems to be no interest in investing in this phase of distribution.
You are absolutely right, Wagner. A lot could change for the better if we had honest leaders (politicians in general) who were capable of carrying out their duties.
And we also wouldn't have voters being corrupted by pre-election (handouts).
But the rulers are concerned with their own gain, not with the country, the population or nature. They are birds of prey.
They want the terrible daylight saving time back and use all the flags to increase their energy profits. Have patience.
Perfect.
Dear friends, today we have a former Delegate Lawyer in the General Directorate of ONS, another Lawyer in another Directorate, and in the most important Directorate an Engineer who understands nothing about the National Interconnected System (SIN). I will not even comment on the disaster that is EPE.
A solution for generation cuts in the Northeast is yet to come, which are the H2V Plants and Datacenters with their gigantic loads.
It's not just the government's fault! The energy sector's greed is also huge! They are subsidized and the ONS has to monitor them because other forms of generation continue to operate... investment in new lines depends on investment from the private sector too!
On the one hand you are right, on the other hand you are not.
In an ideal world, this is excellent. It is necessary to ensure the dynamic and permanent stability of the system. As far as I remember, wind power does not withstand transients and can generate an ERAC trip (I could be very wrong). In addition, the generation of Gigawatts must be constant and meet the demand without any sag (risk of ERAC sag); if sag occurs, there is no time for the hydroelectric plants to respond to this sag (given that those that are turned off and even have time to start up).
It is very complex to turn off hydroelectric plants and leave wind and solar plants on. Given that we have times of demand and times of no demand... Where solar power does not supply at the time needed.
Note:
– ERAC: Regional Load Relief Scheme – loads are switched off to keep the system stable. These loads are usually in
Brazil is a joke. There is no way to move forward, we can only go backwards.
Absurd. It is corporatism in action plus the unions that act against the people to maintain their inviolable incompetence.
In our country, everything is against the people.
They only think about themselves and what they will gain.
Politician, is the worst race that exists on the face of the earth.
Incompetence and comfortable privileged perks of union members.
Remember the discussion about the approval of the bill for app drivers, which made it more than clear that the government is being so blatantly patronized, benefiting apps, unions and of course...the government. Leaving the crumbs for the drivers.
Brazil is a joke, they talk about the government but this is general incompetence of both the government and the private sector that only wants to take advantage of the State. There is no organization, planning, long-term vision for the country to generate surplus energy, fine those who produce it, even though it could lower the cost of energy, encourage the development of industry, make the country more competitive, generate more jobs, but with the politicians and businessmen we have in Brazil, this will never happen. The agribusiness is garbage, it lives off of the State. Businessmen only want to know about taxing imported products and the population is getting into debt to play at online casinos. Brazil has great opportunities and always lets them slip through its fingers.
This is the fault of our politicians who lobby in favor of HYDRAULICS.