ABSOLAR ABGD and [the Brazilian Association of Distributors and Distributors] advocate for rigorous oversight, but urge caution in interpreting figures on irregularities in distributed generation.

A ABSOLAR The Brazilian Photovoltaic Solar Energy Association (ASPnet) and the Brazilian Distributed Generation Association (ABGD) released a joint statement expressing concern about the recent debate regarding alleged irregularities in distributed generation (DG) systems.

In their statement, the organizations affirm their support for the oversight of ANEEL (National Electric Energy Agency) and distributors, in addition to defending the application of penalties provided for in the legislation for proven cases of fraud or non-compliance with the sector's rules.

According to the associations, practices such as unauthorized expansion of nominal power, falsification of records, and misuse of the SCEE (Electric Energy Compensation System) must be rigorously combated.

"Conduct of this nature harms consumers, compromises the stability of the electrical system, and tarnishes the credibility of reputable companies that operate professionally in the MMGD sector in Brazil," the organizations stated.

However, despite advocating for oversight, the associations question the estimates that have been released regarding the extent of the alleged irregularities. In recent months, figures pointing to up to 15 GW of irregular installed capacity and impacts in the billions on energy tariffs have begun circulating in the sector debate.

For entities, it is crucial to differentiate between distinct situations, such as deliberate fraud, technical differences in regulatory interpretation, and administrative or registration errors without malicious intent, thus preventing cases of different natures from being treated the same way.

The associations emphasize that the estimates released so far have not been accompanied by criteria and methodologies that can be independently audited, which, in their assessment, makes it difficult to validate the figures presented.

"Generalizing distinct cases under the same narrative, including with terms that are not part of the official nomenclature of the ONS (National System Operator), weakens public debate, generates insecurity for consumers and investors, and hinders balanced and technically adequate solutions for the Brazilian electricity sector," the document highlights.

At the end of the note, ABSOLAR ABGD and [other organizations] emphasize that building a balanced regulatory environment depends on transparent, technically sound oversight processes capable of distinguishing actual irregularities from potential operational or administrative inconsistencies.

Understand the controversy

The manifestation of ABSOLAR The ABGD announcement comes amid ongoing discussions about potential irregularities in distributed generation systems.

In recent months, energy distributors have begun advocating for stricter oversight of projects that are allegedly operating at higher power levels than authorized, making improper registration changes, or misusing mechanisms provided for in the SCEE (Brazilian Energy Efficiency Control System).

The issue gained traction after the release of estimates indicating between 12 GW and 15 GW of allegedly irregular capacity connected to distribution networks, in addition to potential impacts of billions of dollars on electricity tariffs.  

Unauthorized expansion of solar systems: what the regulations say and how to defend yourself.

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