Brazil Launches 15-Day Consultation on Compensation for Renewable Generation Cuts

Overview

• The Ministry of Mines and Energy opened a public consultation to define criteria and a calculation methodology for compensating cuts that occurred from September 2023 until the law’s enactment.
• Under Law No. 15,269, only reliability-related reductions and transmission unavailability qualify for payment, with energy cuts excluded.
• A draft agreement requires generators to sign with the grantor and formally waive ongoing lawsuits to access compensation.
• The government estimates refunds at roughly R$2–3 billion, while private-sector projections suggest a bill of up to about R$7 billion.
• Contributions are due within 15 days, effectively by Jan. 16, and the minister plans to homologate agreements in the first month as the CCEE prepares to reprocess suspended accounting once rules are set.