ABEEólica (Brazilian Wind Energy Association) contested the argument of ANEEL that compensating generators for generation cuts would cause great losses to consumers.
According to the association, the numbers show that this impact would be minimal: the total payment for the constrained-off, considering wind and solar sources, would result in an average increase of just 0,38% in tariffs and 0,0015% in the inflation forecast for 2025.
In an interview with Canal Solar, the executive president of ABEEólica, Elbia Gannoum, informed that the entity will file a request to suspend the single-judge decision of the President Minister of the STJ (Superior Court of Justice), Herman Benjamin. Last Wednesday (22), this decision overturned the injunction that required the ANEEL (National Electric Energy Agency) to compensate generators for generation cuts.
According to the executive, 2024 was the year in which generation cuts reached their most critical levels, reaching 60% for some generators. This scenario led the entity and the sector's agents to dialogue with the regulator, classifying this impact as unsustainable.
“We already have some companies informing us about the possibility of closing their operations,” she said. She also warned: “We expect 2025 to be an equally challenging year for companies.”
“We are in a dispute with the regulator because we understand that the regulation for generation cuts does not meet the concept of curtailment. We went to court, we have a well-founded thesis, regardless of the injunction, what matters is the discussion of the merits,” said Elbia.
In addition to the legal discussion, ABEEólica seeks to resume dialogue with the ANEEL to improve the situation regarding generation cuts considered eligible for compensation by the regulatory body.
The president of ABEEólica explained that Brazil opted for an interconnected system that optimizes generation, transmission and the costs as well. When there are certain costs, these costs go to the grid s, who are the ones who consume energy. “Now, the tariff impact is very low in relation to other impacts on the system’s security,” she said.
“We need to seek long-term sustainability for this sector, in which risks and costs are allocated appropriately. We are realizing that this is completely erratic and random; it is not possible to work with regulation like this,” he commented.
“Brazil is at an important moment to attract more investment and position itself as a leader in the energy transition. It cannot afford to bring regulatory risks to investors, especially at a time when we are revisiting our entire concept of industrial policy and investment attractiveness. It is irresponsible,” he concluded.
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