The growth of solar energy is fueling debate over connection denials by utility companies.
Distributed generation (DG) in Brazil is experiencing unprecedented expansion. Driven by legislation empowering consumers to generate their own energy – transforming them into “prosumers” – the country now boasts over 4.5 million micro and mini distributed generation units. This technology, with approximately 50.2 GW of installed capacity as of June 2026, primarily uses solar power, naturally concentrating its production during peak sunlight hours and, paradoxically, periods of low energy demand.
This specific dynamic, especially when local production exceeds consumption, leads to the phenomenon known as flow reversal. In these cases, the surplus energy injected into the local electricity grid can overload substations, raising voltage beyond the safety limits established by PRODIST and endangering equipment. This technical scenario has become a point of regulatory friction and, consequently, a trigger for legal disputes.
Right to Connection: Limits and Exceptions
Access to the electricity grid for self-generation is viewed as a fundamental right. However, ANEEL’s Regulatory Resolution No. 1,000/2021 states that this right is not unrestricted. Connection is contingent upon meeting essential technical requirements for the safety and stable operation of the electrical system. Utility companies, in turn, have the authority to restrict or deny connections, but this decision must be robustly supported by specific technical criteria for each case.
It is important to differentiate this situation from events like curtailment, when the National Electric System Operator (ONS) orders generation cuts at large-scale power plants. The motivations and legal scopes of these processes are distinct. While the former relates to local overload issues in distributed generation systems, the latter deals with managing the security and supply of the national interconnected grid.
The Role of the Judiciary and New Regulations
The judiciary has taken diverse approaches in interpreting these issues. Some court decisions have required utilities to conduct detailed technical inspections to prove the infeasibility of a connection. Conversely, other courts have given greater weight to the technical studies presented by concessionaires, provided that regulatory procedures and transparency have been strictly followed.
The publication of ANEEL’s Regulatory Resolution No. 1,098/2024 has significantly reinforced transparency and the pursuit of solutions. The new regulation mandates that utilities prioritize seeking mitigating measures before officially denying a connection. This includes the possibility of reducing the project’s installed capacity or altering the connection point.
The current legal and technical debate focuses not only on guaranteeing the right to connection but also on assessing the proportionality of any imposed restriction. The requirement is for utilities to unequivocally demonstrate that they have exhausted all viable alternatives to enable the connection before opting for a definitive denial. This is a crucial point for ensuring the sustainability and continued growth of the solar energy sector in the country.
