In February, Brazil sured the 37 GW mark of installed power in DG (distributed generation) – a modality that allows consumers to become energy producers, using renewable sources such as solar photovoltaic.
For 2025, the expectation of ABGD (Brazilian Association of Distributed Generation) is that the segment will a growth of around 20% in installed capacity, with more than R$ 25 billion in private investments and the creation of more than 100 thousand new jobs.
“DG reduces dependence on the conventional power grid, providing energy autonomy and environmental and socioeconomic benefits. Its expansion democratizes access to sustainable energy solutions and contributes directly to reducing the carbon footprint, without emitting pollutants,” explains Carlos Evangelista, president of the association.
The executive also highlights that the modality also helps to foster technological development and enable new business models. “DG is consolidating itself as a fundamental pillar of the country’s energy security and a strategic tool for a more sustainable future.”
Impact of DG on the electrical system
Despite its benefits, ABGD states that the advancement of distributed generation has raised discussions about its integration with the SIN (National Interconnected System), especially in relation to curtailment – the famous generation cuts due to limitations in the transmission infrastructure.
“DG is the only form of generation that is linked to final consumption, helping to mitigate problems in the electrical system. The real reason for generation cuts in Brazil is the lack of planning and the structural limitations of the transmission networks, problems that have no relation to distributed generation,” said Evangelista.
According to the executive, attributing curtailment costs to GD diverts the attention of the competent authorities to the structural challenges faced by GC (centralized generation).
“In addition, DG relieves the electrical system by generating energy close to consumption, reducing losses in the network and minimizing the need for investments in transmission infrastructure,” emphasized the association’s president.
In recent months, DG has been the target of criticism related to curtailment, especially from energy distributors, who claim that the accelerated growth of the segment could be impacting the operation of the SIN and generating challenges in the management of the electricity grid.
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