Apine warns presidential candidates: the halt in new clean energy investments due to generation curtailment and regulatory instability threatens Brazil’s energy future.
The Brazilian Association of Independent Electric Power Producers (Apine) has delivered a crucial document to presidential pre-candidates, emphasizing the need for improved management of energy generation curtailment.
The initiative, titled “Electric Energy as a Vector for Development, Competitiveness, and Energy Security,” aims to warn of the growing risk of stagnation in sector investments.
The core of Apine‘s concern lies in the stalling of power generation projects, a phenomenon driven by the escalation in risk perception and the addition of new costs for companies in the sector.
The entity highlights the urgency of establishing clear technical guidelines to mitigate and manage the impacts of “curtailment“—a term for energy production cuts—often caused by limitations in the transmission grid and the current structure of subsidies in distributed generation.
Impact on Investments and Consumers
Apine underlines that the decisions made by the next government will be decisive for the future of renewable energy in the country.
Inadequate management of these challenges could result in the waste of clean energy resources and the improper transfer of additional costs directly to consumers.
Apine CEO Rui Altieri reinforced the gravity of the situation, pointing to the need to unlock essential financial contributions.
“The next government’s decisions will be decisive in curbing the waste of renewable energy, avoiding the improper transfer of costs to consumers, and unlocking the investments necessary for infrastructure expansion.”
Regulatory and Legal Challenges
The Apine document also covers other fundamental pillars for the development of the electric sector, such as the pursuit of regulatory stability, economic efficiency, and legal certainty.
The association advocates for creating an environment that ensures the attraction of investments, avoiding legislative changes that cause unpredictability.
Planning and Infrastructure
To overcome existing bottlenecks, the entity proposes robust sector planning and the acceleration of environmental licensing for strategic transmission grid works.
Additionally, it suggests measures to reduce energy costs through more efficient cost allocation and economic signals that reflect the system’s hourly and locational conditions.
Innovation and New Demands
Apine also looks to the future, proposing the creation of a stable regulatory framework for emerging technologies, such as battery energy storage systems (BESS) and pumped-storage hydropower plants (UHR).
Furthermore, it advocates for the formulation of a national strategy to coordinate the growing consumption of clean energy by sectors such as data centers and electric vehicles with the long-term planning of the Brazilian power system.
Apine‘s message to presidential candidates is clear: the future of Brazil’s clean energy and energy sustainability depends on a firm commitment to legal certainty, regulatory stability, and strategic planning.
Addressing these points is crucial not only to unlock investments but to ensure energy development that benefits both the economy and the consumer, consolidating the country’s role at the forefront of the global energy transition.
