The MME (Ministry of Mines and Energy) published in this Wednesday's edition (31) of the DOU (Official Gazette of the Union) Ordinance No. 890, of December 30, 2025, which opens Public Consultation No. 210, containing guidelines for the treatment of losses resulting from cuts in energy production – the so-called curtailment – in wind and solar plants.
The deadline for contributions to improve the rules was set by the Ministry of Mines and Energy (MME) at 15 days, starting from the date of publication of Ordinance No. 890. This measure had been widely anticipated by agents in the electricity sector, amidst intense debates about the impacts of curtailment, a practice that has imposed significant restrictions on renewable energy generation in the country.
By establishing general principles for addressing the problem, the text signals progress by the government in recognizing curtailment as a systemic risk associated with the operation of the electrical system.
The MME's proposal creates a framework for the development of negotiated and regulatory solutions, opening space for coordinated action between the Ministry, other sector bodies, and the impacted stakeholders.
technical note
Along with the publication of the ordinance, the Ministry of Mines and Energy (MME) made available to stakeholders a Technical Note that justifies the opening of the Public Consultation on the subject.
The document presents a detailed diagnosis of the evolution of curtailment in the Brazilian electrical system and its structural causes, highlighting that the phenomenon has intensified with the rapid expansion of variable renewable sources, especially solar and wind power.
The report indicates that the generation cuts are mainly due to restrictions in transmission infrastructure, regional congestion, operational limitations, and situations of momentary excess supply at certain times.
The text highlights that, in many cases, the projects were fully capable of generating energy, but were prevented from doing so by systemic conditions beyond their control.
The document also acknowledges that the lack of a clear treatment for the economic effects of curtailment has increased the perception of regulatory risk, affecting contracts, financing, and the attractiveness of new projects.
Furthermore, it argues that the MME's initiative seeks to create a more predictable environment, compatible with the continuity of the energy transition.
Commitment term
Another tool provided by the Ministry of Mines and Energy (MME) is the Commitment Agreement, designed as an instrument to facilitate a negotiated solution between the affected parties and the public authorities. The text establishes general conditions for the voluntary participation of generators, providing for reciprocal commitments as an alternative to administrative or judicial disputes.
The document indicates that the commitment agreement may be used as a basis for addressing specific situations of losses arising from curtailment, respecting previously defined technical and operational criteria. The proposal seeks to expedite the handling of the issue, avoiding fragmented solutions and the multiplication of disputes.
At the same time, the Agreement reinforces that adherence does not imply automatic recognition of values or rights, but establishes an institutional channel for the analysis and forwarding of demands, within the applicable regulatory and legal limits.
History and impacts of curtailment
Curtailment has gained relevance in recent years as the installed capacity of renewable sources has grown at a faster pace than the expansion of the transmission network.
During periods of high solar generation or strong winds, the system began to face difficulties in absorbing all the available energy, leading the operator to order preventive shutdowns.
According to industry associations such as ABEEólica and ABSOLARFollowing the blackout of August 2023, losses reached billions of dollars due to increased outages for systemic security reasons and network restrictions.
These cuts directly impacted the revenue of the projects, compromised financial projections, and came to be identified as one of the main challenges to the economic sustainability of renewable energy projects.
Banks that traditionally support the expansion of renewable energy generation in Brazil are reinforcing the seriousness of the situation. Some report a risk of default by entrepreneurs whose financial return prospects have been severely impacted.
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