EPE warns of duplicated connection requests from data centers, straining electrical planning. “Double work” arises from regulatory differences between distribution and transmission networks.
The Energy Research Company (EPE) has raised a critical concern regarding the efficiency of Brazilian power sector planning, highlighting the potential for “double work” in load accommodation studies, particularly for data centers.
The core issue stems from what appears to be a strategy by developers seeking regulatory advantages by applying for connections to distribution networks instead of transmission networks, where guarantees are required.
This scenario, identified by EPE President Thiago Prado, points to “regulatory arbitrage” in the grid access application process.
While connection to the transmission grid follows the National Policy for Access to the Transmission System (PNAST), which mandates financial guarantees, the distribution grid does not have the same requirement.
This difference, according to Prado, may be encouraging developers to opt for the “more comfortable” route of distribution, even for large load volumes.
Regulatory Arbitrage and its Impact on Planning
The distinction in connection rules has led to a significant volume of requests for the distribution grid, which in some states already equals or surpasses those submitted for the transmission grid.
Prado stated during the TechGrid 2026 event, organized by Axia:
Developers end up having a choice. If they don’t need to provide a guarantee to request access from the distributor, it puts them in a more comfortable position to request that access.
This regulatory imbalance challenges the optimization of energy planning resources.
In January, EPE formalized this concern by sending an official letter to the National Electric Energy Agency (Aneel) and the Ministry of Mines and Energy (MME).
The communication aims to request the “harmonization of connection requirements” between the Main Grid, Other Transmission Facilities (DIT), and Distribution Systems.
The measure seeks to address the large volume of connection requests, not only from data centers but also from green hydrogen projects, a promising segment in clean energy.
Alarming Figures and Strain on Infrastructure
Data presented by EPE for the state of São Paulo in December 2025 illustrates the scale of the problem.
1,811 MW in access requests were identified for the main grid, 1,025 MW for DIT, and an impressive 3,980 MW for the distribution grid.
Combined, the requests for DIT and the distribution grid represent approximately 80% of the total access requests in the state.
Prado pointed out:
The arbitrage is clear. We expect the agency to resolve this.
This dynamic is putting undue pressure on distributors, which in turn are being forced to increase their Transmission System Usage Amount (Must) requests.
According to EPE’s letter, this anticipates problems for distributors and DIT that, under normal planning conditions, would only be foreseen in a horizon of 10 years or more.
Future Outlook and the Need for Harmonization
The situation exposed by EPE underscores the importance of more cohesive and unified regulation for the power sector.
The proliferation of data centers and the growth of sustainable energy projects, such as green hydrogen, are global trends driving demand for robust connections.
However, a lack of harmonization in access requirements can lead to significant inefficiencies, waste of resources, and planning delays.
The expectation is that Aneel and the MME will respond promptly to EPE’s request, seeking to balance connection requirements across different grids.
An effective solution will not only optimize EPE’s planning work but also ensure a more transparent and equitable environment for investors in renewable energy and technology infrastructure.
