Brazil Opens Public Consultation on Compensation Rules for Wind and Solar Curtailment

Brazil’s Ministry of Mines and Energy (MME) has launched Public Consultation No. 210 to gather feedback on proposed rules for financial compensation to wind and solar photovoltaic power generators affected by generation curtailment in the National Interconnected System (SIN). The consultation was opened on December 31 and aims to mitigate the impacts of curtailment while improving predictability for the renewable energy market.

The consultation presents a draft Commitment Agreement that sets out criteria for reimbursing generators impacted by operational restrictions. According to the ministry, the proposal seeks to strike a balance between providing legal certainty to investors and avoiding excessive costs for electricity consumers.

The initiative is aligned with Law No. 15.269/2025, which established an administrative transaction mechanism to address accumulated liabilities arising from generation cuts since September 2023. The MME said the measure is intended to organise the compensation process through transparent and predictable rules that reflect the operational realities of Brazil’s power system.

The proposed framework involves the National Bank for Economic and Social Development (BNDES) and the Ministry of Development, Industry, Trade and Services (MDIC), recognising that curtailment has affected the financing of renewable energy projects, many of which rely on credit agreements with public financial institutions.

The consultation also outlines which events may qualify for compensation, distinguishing between systemic restrictions and issues linked to specific technical problems. Under the proposal, generation cuts caused by energy oversupply will not be compensated, while curtailments driven by system reliability requirements or unavailability of the grid may be eligible.

Stakeholders, including power generators, financial institutions, and other market participants, can submit contributions until January 16 via the MME’s Public Consultation portal. Supporting documents, including Technical Note No. 10/2025/DPME/SNEE and the draft Commitment Agreement, are available on the official consultation platform.