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The CMSE decided to establish a working group to address ways to minimize cuts in renewable energy generation during a special meeting on Thursday.
Energy production from these sources saw a notable rise the previous year, resulting in a surplus of wind and solar energy.
The Ministry of Mines and Energy stated that the group plans to focus on expanding and strengthening the energy transmission network, introducing new synchronous compensators for the Northeast region, and preparing for transmission line projects, among other initiatives.
The Department of Electrical Energy within the Ministry of Mines and Energy will oversee the coordination of the team, with the involvement of other departments within the ministry.
Aneel, the Energy Research Company, ONS, and the Electric Energy Trading Chamber will be included in the group along with the regulatory agency.
Business executives say that power generators in Brazil are anticipating another year of significant reductions in the production of their wind and solar power plants due to limitations in the country’s electric system. This ongoing issue, exacerbated in the previous year, calls for immediate action to prevent further financial losses.
The future of the energy industry looks bright, but progress may face challenges.
Electrical energy companies may encounter a new challenge in profits this year due to the impasse between generators and regulatory agencies, potentially impacting their gains despite Ibovespa’s stability during major crises.
The deadlock arose due to power generation reductions by the ONS last year, resulting in interruptions in 1,445 wind and solar power plants totaling 400,000 hours, equivalent to 50 years of electricity generation. A study by Volt Robotics showed that this led to a financial loss exceeding R$1.6 billion.
The generators aim to raise the Brazilian electricity bill to make up for losses caused by the shutdowns, a move that Aneel deems unjustified.
Energy companies listed on the stock exchange may encounter difficulties due to the unpredictability in generation and potential financial losses, which can impact their revenues and stock value.
Investment in renewable energy projects by companies in the sector faces risks such as regulatory uncertainty and legal disputes, which could impact their growth and competitiveness in the stock market, according to Louzada.
Investors may become more careful, requiring higher returns to offset perceived risks, leading to an increase in the capital cost for these companies.
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