Brazil’s distributed generation reform to respect existing users

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email
ANEEL: Current distributed rules set to create 'high costs' for other customers and must be reformed (Credit: AES)

The distributed generation arrangements of tens of thousands of Brazilians will be respected by a reform poised to see the light later this year, power market regulator ANEEL has confirmed.

The new rules slated for publication in H2 2019 will only apply to new connections in Brazil, said Daniel Vieira, adviser to ANEEL’s board, at a meeting recently arranged by PV association ABSOLAR.

The move, he added, will help preserve the “legal certainty and the contracts of the pioneers who believed in this technology”.

The decision is likely to bring respite to the less than 75,000 consumers who – ABSOLAR estimated as of early February 2019 – have been connected to a distributed generation system and injected the surplus back to the network since 2012, when ANEEL first set out the rules.

The figure is not “even a drop in the ocean” of Brazil’s 84 million “captive” consumers serviced by mainstream distributors, ABSOLAR believes. “The fact remains that we are far behind the world,” the trade body commented in early February.

PV and distributors lock horns over reform

Regulator ANEEL has worked in the past few months to fuel a debate on the distributed generation overhaul.

At public hearings and other events, the agency has stressed its support to the innovation – which it is sees as “inexorable” and “empowering for consumers” – but also defended the need for reform.

“Studies indicate that maintaining the current rules indefinitely can lead to high costs for the other users of the network, who did not install their own generation,” ANEEL has argued.

The debate process has been accompanied by opposing lobbying efforts by the PV and mainstream distributor camps. Earlier this year, ABSOLAR criticised the latter for resisting a “new reality” of distributed generation and “intentionally leaving out” its economic, environmental and social benefits.

The distributed generation talk comes at an auspicious time for the broader Brazilian PV ecosystem. The industry recently broke the 2GW installed capacity mark – twice the volume recorded one year earlier – and is gearing up to upcoming auctions, starting with a 27 June tender.

Read Next

PV Tech Premium
October 27, 2021
As prices rise and component availability remains tight, both solar’s upstream and downstream are rallying behind the common cause of ensuring which projects can go ahead, do go ahead in a timely fashion. Liam Stoker assesses the industry’s efforts to keep the supply chain moving forward.
October 27, 2021
Colombia has awarded contracts to 11 solar PV projects with a combined capacity of 796.3MW in its third renewable energy auction.
October 27, 2021
Swiss fund manager SUSI Partners is acquiring a portfolio of more than 200MW of distributed solar PV and wind assets in Chile, marking its first investment in Latin America.
October 25, 2021
The Cabinet of Japan’s government has approved a plan to raise the national target for renewable energy in the electricity generation mix to between 36% and 38% by 2030. 
PV Tech Premium
October 22, 2021
Average winning solar bids in Spain’s renewables auction this week came in above those for wind as interest among PV bidders faltered against a backdrop of rising equipment costs and regulatory uncertainty.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
November 10, 2021
8am (PST) | 5pm (CET)
Solar Media Events
December 1, 2021