en.Wedoany.com Reported - On August 11, Brazil's Ministry of Mines and Energy disclosed that a total of 1,539 wind farms and photovoltaic power plants registered preliminary intent to participate in curtailment compensation agreements, involving approximately 53 GW of installed capacity, accounting for 91% of the reference capacity counted by the National Electric System Operator. The intent registration ended on August 10, and generation companies that completed registration may proceed to the curtailment verification and compensation calculation process.
This compensation applies to specific curtailment events that occurred between September 1, 2023, and November 25, 2025, covering wind and photovoltaic projects connected to the National Interconnected System backbone grid and related transmission facilities. Based on Law No. 15,269 of 2025, Brazil's Ministry of Mines and Energy issued Normative Ordinance No. 140 in July 2026, specifying the scope of application, data verification methods, and implementation procedures for the compensation agreements.
Curtailment events eligible for compensation include unavailability of external transmission facilities, as well as generation reductions implemented to meet power system reliability requirements. Curtailment caused by power supply exceeding system load and absorption capacity is not within the scope of this round of compensation; generation losses caused by failures in generation companies' own or shared transmission facilities are likewise not compensated.
The registered data will be processed by the National Electric System Operator and the Electric Power Trading Chamber. The system operator will re-verify the producible generation of each plant on an hourly basis, classify curtailment events into three categories—external facility unavailability, system reliability requirements, and power supply surplus—and produce a final dataset. After receiving the data, the Electric Power Trading Chamber shall publish the hourly curtailed generation and corresponding classification for each plant within 30 days, after which generation companies may decide whether to formally sign the agreement based on the verified results.
After formal signing, the Electric Power Trading Chamber will re-settle compensation through historical transactions. The compensation amount will be adjusted from the date of the curtailment event in accordance with the Broad Consumer Price Index, and the relevant re-settlement must be completed within 180 days after the agreement signing deadline. Curtailed generation included in backup energy contracts and regulated market availability contracts will be treated as delivered energy; other eligible generation will be calculated at the short-term settlement price of the power submarket where the plant is located, while projects under the Alternative Energy Incentive Program will be priced at the contract tariff in effect at the time of curtailment.
Once signed, the compensation agreement is irrevocable. Participating companies must waive administrative, arbitration, or judicial claims related to curtailment events occurring before November 25, 2025, and withdraw any litigation already initiated.
