Brazil

In the current period of transformation, the Brazilian electricity sector sees a mismatch between energy generation capacity and transmission infrastructure. After years of accelerated growth, the sector faces the challenge of balancing energy transmission and generation cuts (curtailment), aggravated by a scenario of reduced domestic demand. In the field of offshore wind, gaps persist in the rules governing the initial concession of areas.

Curtailment as the main obstacle

The issue of curtailment has become the main obstacle to new investments. By 2025, generation cuts imposed by the National System Operator (ONS) resulted in losses in the billions. Law No. 15.269/2025 was introduced to mitigate these impacts and restore confidence. The law governs the reimbursement of liabilities accumulated between 2023 and 2025; however, it still needs regulation and application. The legislation also defines guidelines for energy storage, the central element to grid stability in systems with high penetration of intermittent sources, allowing the surplus generated during periods of low load to be used later rather than being discarded, as has been happening in Brazil. The first battery auction, scheduled for 2026, generates strong expectations as a technological solution to this impasse.