Aneel will coordinate a working group to map and regularize distributed generation facilities operating outside of regulations, a critical step for system safety.
The Electric Sector Monitoring Committee (CMSE) has taken a decisive step to enhance the oversight of distributed micro and mini-generation (MMGD) in Brazil. It approved the formation of a dedicated working group, led by the National Electric Energy Agency (Aneel), with the objective of investigating and diagnosing systems that operate without proper compliance or registration with distributors.
This initiative arises from growing concerns about the integrity of data used for the planning and operation of the electric system, which are affected by the presence of uncontrolled MMGD units.
Preliminary findings presented by Aneel, which already indicated irregularities after detection and inspection efforts, triggered the formation of this group, which will include collaboration from various sector institutions.
The Challenge of Irregular Generation and Data Discrepancies
The complexity of the issue lies in the significant discrepancy between projections from the National Electric System Operator (ONS) and actual field findings. The ONS estimated uncounted capacity between 11.8 GW and 14.6 GW, possibly linked to unregistered or incompletely documented MMGD systems. This estimate was generated indirectly by comparing expected load with observed load, and does not imply direct identification of 15 GW in irregular installations.
In contrast, an Aneel survey analyzing data from 19 concessionaires revealed that 87.93 MW were indeed operating outside authorized standards. This occurred within the Cemig, CPFL, Energisa, and Neoenergia groups. The companies inspected 22,739 consumer units out of a total of 70,187 considered suspicious, finding irregularities in 13,402 cases – about 59% of the inspections. The power confirmed to be operating illicitly represented 0.31% of the 28 GW of MMGD registered by the evaluated distributors.
To intensify the fight against these irregularities, Aneel plans to increase the participation of distributors in the identification and screening processes. Furthermore, the agency will conduct comprehensive inspections to assess both the internal procedures of the companies and the impacts of these irregular systems on distribution grids, as well as the steps for their regularization.
Generation Curtailments: A System Alert
The urgent need for accurate data on distributed generation was highlighted by recent instances of minimum load in the system. During the same CMSE meeting, the ONS reported activating an emergency plan for the second time to curtail generation connected to distribution on August 23rd, achieving a reduction of 2 GW.
This measure was crucial for balancing the high output of MMGD with lower energy consumption during the weekend, preventing generation from exceeding demand and compromising the operational safety of the system. The CMSE also finalized the report from the working group on generation curtailments, indicating the completion of 19 out of 27 proposed measures. The remaining actions are still underway, with deadlines re-evaluated due to their technical and regulatory complexity. The full report will be released in the future.
Impact and Outlook for Clean Energy
The formation of this working group is a critical step towards stability and transparency in Brazil’s clean and sustainable energy sector. The investigation and eventual regularization of illicit MMGD installations will not only ensure data integrity for energy planning but also foster a safer and fairer environment for all market participants.
Aneel and the CMSE reiterate their commitment to ensuring that the expansion of distributed generation continues in an orderly fashion, leveraging the benefits of renewable energy without compromising the reliability of the Brazilian electric sector. The results of future work, including the report on generation curtailments, will be essential for shaping new proposals and strategies to manage generation surpluses and optimize system operation.
