The Federal Regional Court of the 1st Region granted a partial decision to the appeal filed by ABSOLAR (Brazilian Association of Photovoltaic Solar Energy) and ABEEólica (Brazilian Association of Wind Energy), determining that the ANEEL (National Electric Energy Agency) ensure full compensation to associated generators affected by constrained-off events.
This decision covers all events recorded and disclosed after the publication of the ruling, without limitations related to external unavailability or the incidence of hour allowances.
Constrained-off, or generation cuts, have been a critical challenge for renewable generators, negatively affecting plants' cash flows and ability to meet financial and contractual obligations.
In 2022, only a small portion of the power outages suffered by generators were effectively compensated (7,6%). In 2023 and the first half of 2024, almost no financial compensation was made. This reality resulted in downgrades of companies' credit ratings and the risk of breach of contractual clauses (covenant breaks).
A ABSOLAR highlights that this victory is the result of a technical and collaborative approach, with respect for institutional processes and the performance of ANEEL, which plays a fundamental role in regulating the sector.
“We will continue to work hard on this topic, committed to contributing to the strengthening of renewable sources in Brazil, especially solar photovoltaic sources, based on constructive and proactive dialogue,” said the Association.
all the content of Canal Solar is protected by copyright law, and partial or total reproduction of this site in any medium is expressly prohibited. If you are interested in collaborating or reusing part of our material, please us by email: [email protected].
