Our consultant Luiz Felipe Monteiro Seixas was featured in a BNamericas article discussing the regulatory developments regarding curtailment expected in Brazil.
According to the report, progress is expected on at least two fronts this year. The first aims to define the rules for financial compensation for generators affected by generation curtailments determined by the National Electric System Operator (ONS). The other concerns micro and mini distributed generation (MMGD) in the context of curtailment.
The first proposal is in line with Law No. 15,269/2025 (originating from Provisional Measure 1,304/25), which created an administrative settlement mechanism to address liabilities accumulated since September 2023 due to curtailment. The measure seeks to organise the process with transparent, predictable rules that are compatible with the reality of the electricity system.
The issue was addressed in a public consultation organised by the Ministry of Mines and Energy (MME), which concluded in January. According to Luiz Felipe, “the market is still waiting for the MME to consolidate the contributions from this consultation to know exactly what has been submitted; this is standard procedure.”
He emphasised that there is already a legal basis for establishing compensation criteria for generators in cases of curtailment and that the government will not necessarily have to issue a decree.
‘The ministry could make adjustments to the existing system, draw up a memorandum of understanding and open a window for participation. Following that, the National System Operator (ONS) and the Electric Energy Trading Chamber (CCEE) would implement this part of the calculation, determining the amount of compensation due,’ he explained.