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Solar and Wind Energy: 63 GW Eligible for Curtailment Compensation

Solar and wind energy: 63 GW eligible for curtailment compensation – Photo: Reproduction / Freepik | Pixbay
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A total of 1,827 renewable power plants, totaling 63.28 GW, have been deemed eligible for the country’s energy curtailment compensation agreement.

The Brazilian clean energy market is taking steps to resolve one of the sector’s most significant recent bottlenecks.

According to a survey by the CCEE, based on the guidelines set forth in Normative Ordinance 140 of the MME, thousands of power plants have received approval to participate in the financial compensation mechanism.

The measure aims to mitigate the impacts caused by dispatch restrictions, a phenomenon known in the industry as curtailment.

Experts from Volt Robotics estimate that the total volume of compensation could reach a substantial R$ 4.4 billion for cases linked to system reliability issues.

Overview of eligible plants

The official list includes 1,145 wind farms, representing 37.77 GW of installed capacity, as well as 682 solar photovoltaic complexes, totaling 25.51 GW.

In total, 1,902 projects had previously expressed interest, but a technical screening conducted by the ONS identified restrictions for 75 facilities.

The group of projects deemed ineligible includes units that have not yet begun construction, plants with an operational schedule outside the regulatory window, and specific wind power assets.

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The regulation stipulates that only interruptions occurring between September 2023 and November 2025 fall within the scope of compensation.

Next steps and adherence rules

Technical approval does not guarantee the automatic transfer of funds.

Asset owners must formalize their acceptance through a specific legal instrument, which requires the withdrawal of any pending lawsuits or arbitration regarding the matter.

The financial effects of the agreement depend exclusively on the formal signing of the Commitment Term by the interested parties.

Once the documents are validated, the CCEE will be responsible for recalculating the amounts owed to producers.

For energy linked to the regulated market, the values specified in the original contracts will apply, while for other portions, parameters based on the PLD (Difference Settlement Price) will be used.

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