Brazil is currently experiencing a public and silent war between two models of electricity generation: centralized generation and distributed generation. The recent approval of Provisional Measure 1304, entitled "modernization of the electricity sector," has laid bare this conflict. Despite its name, the proposal represents an oligopolistic regression, favoring large economic groups and threatening the advancement of a more democratic and sustainable model.
Centralized generation is when energy is produced in large power plants—hydroelectric, thermoelectric, or wind farms—and distributed through extensive networks to consumers. Distributed generation, on the other hand, occurs when consumers generate their own energy, usually through solar panels installed on the roofs of homes, businesses, or rural properties. This model has grown exponentially in Brazil, with millions of photovoltaic systems installed and thousands of small businesses operating in the sector.
These companies, all less than a decade old, have invested their capital, knowledge, and purpose in building a new energy paradigm. Today, distributed generation is responsible for more than 2 million systems connected to the grid and generates approximately 300 direct and indirect jobs across all Brazilian municipalities. It is a silent revolution that decentralizes energy power and strengthens the resilience of communities.
However, this revolution is unsettling. Distorted narratives have been propagated to discredit solar energy, labeling it as "something for the rich," accusing it of promoting "energy racism" or benefiting from "cross-subsidies." This selective discourse hides the hypocrisy of those who fear losing control over the electricity sector. The truth is that distributed generation democratizes access to energy, reduces costs, increases energy security, and directly contributes to the decarbonization of the energy matrix.
Resistance to centralized generation is understandable: the distributed model is disruptive. It breaks with the vertical logic of the electricity sector and proposes a decentralized, digitized, deregulated, and decarbonized system. Imagine a country where energy is traded end-to-end, between consumers and local producers, without intermediaries. This is the vision I presented at Latinoware, an open technology congress in Paraná, when proposing energy as "open source," where everyone can freely generate, consume, and trade it.
Explaining this to young people is easy. They understand the logic of decentralization, autonomy, and innovation. For those who see the electricity sector only as a robust and closed system, this idea seems utopian. But it's not. Distributed energy resources—such as solar panels, batteries, electric vehicles, and intelligent management systems—are already a reality. A clear example is the use of solar panels in the Minha Casa Minha Vida (My House, My Life) program and in public schools, which reduce costs and free up resources for education.
The true modernization of the electricity sector lies not in changing the trading model, as proposed by Provisional Measure 1304, but in preparing the distribution network to integrate these distributed resources. This requires investments in technology, intelligent regulation, and political will. Brazil has abundant solar potential, technical capacity, and an increasingly aware society.
Unfortunately, society is still confused. The war between energy models is fought behind the scenes, with technical terms and hidden interests. Few know what is really at stake—and what is best for the country. But one thing is certain: the path of distributed generation has been set and cannot be stopped. It represents the future of energy in Brazil and the world.
We move forward with hope and conviction. Tomorrow's energy will be free, clean, and shared. And this transformation has already begun.
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.
An answer
Dear Sirs, conservatives advocate for freedom of investment in all segments of society, but there are lobbyists working in the National Congress and the regulatory agency to block the unstoppable expansion of distributed generation. An off-grid system cannot, under any circumstances, be obstructed by these evil entities, and it is a very good option for those who can invest in energy independence from a utility company, which, as we know, currently charges one of the most expensive kWh rates in the world. Therefore, if you can invest in a hybrid system, I consider it the best solution for guaranteeing uninterrupted electricity. Solar generation is already the second largest in installed capacity in Brazil, with around 44GW, representing about 30% of our capacity.