The Brazilian Photovoltaic Association Warns That The Rejection Of The Electricity Law Jeopardizes Renewable Energy Investment,

 

The Brazilian Photovoltaic Association warns that the rejection of the electricity law jeopardizes renewable energy investment, and the withdrawal of compensation clauses will impact project stability.

 

When the Brazilian federal government approved Electricity Sector Reform Law No. 15269 in 2025, it rejected Clause 1-A, which pertains to the renewable energy compensation mechanism. This clause, originally an amendment to Law No. 10848 of 2004, aimed to provide structural compensation for solar and wind farms damaged by power curtailment.

 

The Brazilian Photovoltaic Solar Association (Asociación Brasileña de Energía Solar Fotovoltaica) points out that this rejection will severely impact the stability of existing renewable energy projects, leading to a loss of investor confidence, capital flight, and the risk of business failures. The association's CEO, Rodrigo Soaya, emphasized that large-scale photovoltaic power plants invested in and constructed since 2013 will face policy uncertainty, hindering the progress of new projects and thus delaying Brazil's energy transition.

 

Under Clause 1-B, which will remain in effect, wind and solar power plants connected to the national grid can apply for compensation for external unavailability costs incurred from September 1, 2023, until the law takes effect. However, this clause only specifies "costs related to operational reliability requirements" and does not directly define the scope of "power curtailment" compensation like the rejected clause. The National System Operator and the Electricity Commercial Commission will be responsible for calculating the power curtailment volume and compensation amount, respectively.