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The CMSE decided to establish a task force during a special meeting on Thursday to address ways to minimize cuts in renewable energy production.
Energy production from these sources saw a notable rise last year, resulting in excess wind and solar energy.
The Ministry of Mines and Energy stated that the group will focus on expanding and strengthening the energy transmission network, introducing new synchronous compensators for the Northeast region, and planning 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, working in collaboration with other departments within the ministry.
The group will include Aneel, the Energy Research Company, the ONS, and the Electric Energy Trading Chamber, in addition to other regulatory agencies.
Business executives say that power generators are anticipating another year of significant reductions in production from their wind and solar plants due to limitations in the Brazilian electric system, which worsened last year. They emphasize the need for a quick solution to prevent financial losses.
Future prospects for the energy industry look positive, but progress may be hindered by challenges.
Electrical energy companies may encounter a new challenge in profitability this year due to the standoff between generators and regulatory agencies, potentially impacting gains, as experts suggest.
The deadlock arose due to power generation interruptions by the National Electric System Operator last year, resulting in a total of 400,000 hours of downtime for 1,445 wind and solar power plants. According to a study by Volt Robotics, this led to a financial loss of over R$1.6 billion.
The generators are seeking to raise the cost of electricity in Brazil to make up for the losses caused by the shutdowns, a move that Aneel deems unjustified.
Energy sector companies listed on the stock exchange may encounter difficulties during such times. The volatility in production and potential financial setbacks can significantly impact their earnings and, as a result, the worth of their shares, according to economist Fábio Louzada, co-founder of Eu Bench Education.
Investments in renewable energy projects by companies in the sector face risks such as regulatory uncertainty and legal conflicts, potentially impacting their growth and competitiveness in the stock market, according to Louzada.
Investors may become more careful, asking for greater returns to offset perceived risks, thereby raising the capital cost for these companies.”
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