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Opinion Article

The next regulatory step for distributed generation

Compensation and network operation are entering an agenda that could alter the economics of distributed generation (DG) projects.

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Brazilian distributed microgeneration (micro and mini-distributed generation) is entering a phase where the outcome of projects will increasingly depend on compensation rules, tariffs, and network operating conditions. Discussions with different origins and timelines are progressing in parallel and may have effects on the same investment.

The scale achieved helps to understand this movement. According to EPE (Energy Research Company), the installed capacity of distributed generation (DG) increased from 36,2 GW in 2024 to 45 GW in 2025. This expansion increased the participation of consumers in electricity production and made the integration of these resources a relevant issue for the planning and operation of the system.

Some of the changes are already planned in 14.300 LawIn the frameworks subject to the general transition of Article 27, the incidence of the distribution components known as Wire B on compensated energy reaches 60% in 2026, 75% in 2027 and 90% in 2028.

These percentages apply to a portion of the tariff; they do not represent an equivalent loss of the total savings provided by the solar system. There are also installations eligible for the compensation rules preserved by Article 26 until 2045, subject to legal conditions. The scope of this protection should be examined in conjunction with the other rules applicable to each project.

Another area of ​​focus is the ECR (Resource Supplement Charge), associated with the CDE (Energy Development Account) ceiling. 15.269 Law It foresees, starting with the 2027 budget, a proportional reduction in benefits funded by the CDE when the corresponding expenses exceed the legal limits.

The rules for its application are under discussion in ANEEL (National Electric Energy Agency). For MMGD, the effect will depend on the classification and the portion of the benefit actually financed by the account. Therefore, it is not appropriate to assign a single percentage of loss to the entire segment.

The discussion regarding hourly fares also deserves attention. The Federal Prosecutor's Office attached to ANEEL issued an opinion admitting its application to consumer-generators, conditioned on the preservation of the legal benefits of the transition.

This opinion is part of the regulatory process and does not constitute a final decision on the proposal. If there is a change in the applicable tariff structure, the time of generation and consumption may alter the discount on the bill, even without a change in physical production.

The definition of the valuation of the costs and benefits of MMGD, foreseen in the legal framework for the post-transition regime, adds another dimension. The result of this discussion will influence the economic recognition of the projects' contribution to the system, respecting the different legal timelines.

In this operation, Public Consultation 033/2026 discusses monitoring, communication, and command response requirements for resources connected to the distribution. ANEEL recognizes the need to better understand the behavior of these resources and to coordinate their actions.

This is the issue of observability: registering installed capacity does not replace monitoring how generation behaves on the grid. The proposal foresees differentiating requirements according to the size and impact of each resource.

This debate relates to generation restrictions, known as curtailment, and the limits of intervention in distributed generation (DG) facilities. A limitation on injection can reduce the energy allocated for compensation; a tariff change can alter the economic benefit of the energy actually harnessed.

The legal protection of compensation and the regulation of cuts require specific analyses. The existence of control proposals does not authorize the conclusion that all installations are already subject to the same regime of restrictions.

The monitoring of unauthorized alterations and connection conditions are also under discussion. Addressing irregularities needs to maintain a distinction between proven situations and regular installations. Generalizations hinder understanding of the effects of the measures and the situation of those who invested while observing the rules.

The key point is the combination of these factors. Depending on the approved rules and project profile, changes to compensation benefits, tariffs, or operation can modify projected savings, payback period, and long-term contract conditions. The impact will differ between local self-consumption and remote generation, between small systems and larger installations, and between the legal transition regimes.

The agenda for the coming months deserves careful and technical monitoring. Part of it is already mandated by law; another part remains subject to debate and decision. Clarity regarding these differences allows for an assessment of what effectively changes for each consumer-generator. Confidence in distributed generation also rests on the predictability of the conditions under which it will continue to grow.

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.

Alvaro Jose
About the Author
Alvaro Jose

The Secretary of Regulatory Affairs at INEL (National Institute of Clean Energy) has the mission of contributing to the development of studies, analyses, and initiatives that strengthen legal certainty, the regulatory environment, and the sustainable development of the sector.

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