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While Brazil sets records in solar and wind energy, the electrical system shuts down power plants every day because the transmission lines can’t handle it — and the losses have already exceeded R$ 5 billion in three years.

Written by Douglas Avila
Published on 21/04/2026 at 11:05
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Brazil’s solar capacity is eight times greater than five years ago and wind energy has doubled — but the transmission network has only grown by 29%, resulting in a billion-dollar waste of clean energy that has already caused R$ 5 billion in losses

Brazil has become a powerhouse in solar and wind energy. The installed capacity of solar energy jumped from 1,283 MW in 2018 to over 10,141 MW — an eightfold increase in five years.

During the same period, wind energy doubled, rising from 13,240 MW to 27,529 MW.

Distributed generation — that from rooftop panels — has already surpassed 37 gigawatts of installed capacity, benefiting more than 20 million Brazilians.

But there is a serious problem hidden behind these impressive numbers.

According to reports from 2024, Brazil wasted about 10% of all the energy generated in the country, representing a loss of approximately R$ 2 billion in a single year.

The wind sector estimates that the accumulated losses from generation cuts have already reached R$ 5 billion in the last three years.

High voltage transmission lines in the Brazilian hinterland
Brazil has 179,311 km of transmission lines, but the network has only grown by 29% in six years — insufficient for renewable expansion.

Why Brazil wastes clean energy every day

The phenomenon has a technical name: curtailment. In simple terms, it means that power plants are shut down even when they are generating energy.

This happens because the transmission network cannot transport all the electricity produced.

The expansion of solar and wind plants has been much faster than the construction of new lines.

According to Nivalde de Castro, a professor at the UFRJ Institute of Economics and general coordinator of GESEL, the problem has worsened precisely because of this speed difference.

Brazil currently has 179,311 km of transmission lines in the national interconnected system.

It seems like a lot, but the system has only grown by 29% in six years — while renewable capacity has multiplied several times.

The grid was designed for a generation profile that no longer exists.

The solar and wind generation poles — concentrated in the Northeast — are far from the major consumption centers.

The National System Operator cuts plants every day

To avoid overloads and the risk of blackouts, the National Electric System Operator (ONS) has adopted strict criteria.

In practice, wind and solar plants in the Northeast are shut down daily.

According to Elbia Gannoum, president of ABEEólica: “The problem is bigger now because rooftop energy is generating a lot and occupying all the space in the system.”

Distributed generation flows in a decentralized manner.

The ONS cannot control or predict these fluctuations throughout the day.

When the wind blows strong and the sun is high, but demand is low, the consequence is a technical cut.

It’s like having a faucet open with the water tank already overflowing.

Wind turbines in a wind farm in the Northeast
Wind capacity has doubled in five years, but the ONS cuts plants daily due to excess generation without outflow.

The financial impact: R$ 5 billion in three years

Every time a plant is shut down, the owner loses revenue.

The wind sector estimates that accumulated losses reach R$ 5 billion in three years.

In 2024 alone, the waste represented about R$ 2 billion.

Companies in the sector have gone to court seeking reimbursement.

Wind and solar projects see their revenue drop during the hours when they should capture the best price.

This alters financial projections, extends payback periods, and can halt new auctions.

The consumer also loses: the cheap energy that should reach the electricity bill is discarded.

The Northeast is the most affected

The region concentrates the majority of Brazil’s wind farms and large solar plants.

But it is also where cuts are most frequent.

Energy is produced where demand is lower and needs to travel thousands of kilometers to where it is consumed.

Without sufficient transmission lines, the surplus is simply discarded.

Solutions exist — but depend on investment

Experts point to three main pathways.

The first: accelerate the construction of transmission lines between the Northeast and Southeast.

According to Renata Francisco, an advisor at EPE, the recommended expansions will strengthen strategic corridors.

The second: large-scale storage batteries to store surpluses during the day and return them at night.

The third: demand response — encouraging consumers to use more energy during times of abundance.

With reinforced transmission, batteries, and flexible demand, solar and wind energy will no longer be cut and will help lower the bill.

Industrial energy storage batteries
Large-scale batteries can store renewable surpluses and prevent the cutting of plants.

The paradox of Brazil’s energy transition

Brazil is in a contradictory situation.

It is one of the fastest-growing countries in renewable energy in the world.

It has abundant sun, constant wind, and an 83% clean electricity matrix.

But it wastes energy because the infrastructure has not kept up.

Every megawatt cut is a step back in decarbonization.

The ONS has promised to present a surplus management plan, but the sector demands urgency.

What is needed to resolve

Building transmission lines takes years between licensing and construction.

Industrial batteries are still expensive, although costs are falling globally.

Representatives of distributed generation contest that solar growth is the villain.

What no one contests is the result: Brazil generates clean energy and throws it away while still burning fossil fuels in thermoelectric plants during peak hours.

It’s like having leftover food in the fridge and ordering delivery — and throwing the food away the next day.

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Douglas Avila

I've been working with technology for over 13 years with a single goal: helping companies grow by using the right technology. I write about artificial intelligence and innovation applied to the energy sector — translating complex technology into practical decisions for those in the middle of the business.

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