A ABSOLAR (Brazilian Photovoltaic Solar Energy Association) assesses that the veto on curtailment compensation in Law 15.269/2025 It undermines investor confidence, directly affects the attractiveness of solar and wind projects in Brazil, and increases the perception of legal uncertainty in the sector.
According to the organization, the Federal Government's decision threatens projects already in operation and could lead to capital flight, business closures, and delays in the country's energy transition. The association argues that the veto transfers significant costs from generation cuts, determined by the system operator for the benefit of all consumers, to renewable energy generators.
The organization states that the decision alters rules in place when the projects were contracted, designed, and built, creating an environment of greater regulatory instability. The CEO of ABSOLARRodrigo Sauaia emphasizes that the vetoed provision was essential to ensure predictability for projects structured since 2013, conceived without considering the costs and restrictions now imposed by generation cuts.
According to him, removing the article disrupts the stability of these investments and discourages new solar and wind power projects, delaying the expansion of renewables in the country.
“Entrepreneurs and investors who believed in Brazil are being doubly harmed by the generation cuts. In addition to being prevented from delivering their clean and competitive energy, even suffering contractual penalties for it, they were also forced to bear the costs of the cuts, made for the benefit of the system and for the benefit of all consumers,” he points out.
Uncertainties regarding financing and new projects
A ABSOLAR The organization also expressed concern about the impact of the veto on the financing of large power plants. In recent years, public and private banks treated the renewable energy sector as a safe and predictable destination for investment. According to the entity, this perception is changing.
With increased regulatory risk, financiers tend to demand stricter conditions, make renegotiations more difficult, or even withdraw from new operations. This change puts pressure on entrepreneurs' cash flow and can lead some companies to become unviable.
“The lack of a suitable solution to the problem makes the task of renegotiating loans with the financial sector even more arduous and complex for generators. As a result, there is a real risk that companies will not survive,” explains Sauaia.
“Furthermore, we have identified a trend of canceling new projects and returning permits for projects that have not yet started, which represents a huge setback to Brazil's sustainable development,” he adds.
Given the impacts, the ABSOLAR It reported that it is evaluating, together with its members, measures to restore the economic and financial balance of the generators affected by the veto in Law 15.269 / 2025.
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