Brazil boasts some of the planet's greatest natural resources for renewable energy generation. We have abundant sunshine, constant winds, and a consolidated hydroelectric matrix, which places us in a strategic position to lead the energy transition.
Despite this potential, we live with the reality that a significant portion of this clean energy does not reach consumers, as it is wasted due to structural failures in the electrical system.
This waste, known as curtailment, compromises the competitiveness of renewable sources and keeps Brazilians trapped in expensive and inefficient electricity bills.
This problem directly affects the competitiveness of renewable energy in Brazil. Brazilian consumers continue to pay high electricity bills, while clean, low-cost energy goes untapped.
The situation is made worse because, instead of creating incentives for this energy to be used intelligently, current policies end up imposing additional barriers.
More batteries, fewer fees, and more strategy
One example is the lack of regulation for batteries in the country. Currently, those who want to install storage systems pay twice: one fee to store the energy and another when they inject it back into the grid. It's a contradiction.
In major international markets, there are exemptions specifically to encourage the use of batteries, which are crucial for providing flexibility to the electrical system and reducing waste. Brazil, unfortunately, still has no batteries.
TUSD exemption in the Northeast and incentives for data centers
Another measure that could mitigate curtailment would be to exempt the distribution system usage tariff (TUSD) in the Northeast. This region concentrates much of our solar and wind generation capacity but suffers from transmission bottlenecks.
By exempting strategic consumers in the Northeast from the TUSD tax, such as industries and data centers, we could create a virtuous cycle: reducing energy waste, attracting investment, and boosting regional development.
Building data centers in the Northeast is, in fact, a strategic solution. These infrastructures consume large amounts of energy and, if positioned near renewable energy plants, could absorb some of the production currently being discarded. It's a smart way to transform excess energy into an opportunity for technological and economic innovation.
Brazil has the potential to become a global leader in the energy transition, but to do so, we must face the challenge of curtailment with courage and foresight. Encouraging batteries, reviewing storage taxes, and easing tariffs in the Northeast are urgent and concrete measures.
It's not just about reducing costs or waste: it's about building a more modern, resilient, and sustainable electrical system for all Brazilians.
If we want clean, affordable, and available energy for Brazil, we need public policies aligned with this reality. The future is already here; we just need to unblock the obstacles that prevent us from taking full advantage of it.
The opinions and information expressed are the sole responsibility of the author and do not necessarily represent the official position of the author. Canal Solar.
