Brazil has introduced a compensation framework for wind and solar generators affected by curtailment, covering eligible grid-related and reliability-driven cuts from 2023 to 2025. The rules aim to reduce legal uncertainty, while excluding energy oversupply-related curtailment and highlighting the need for long-term grid expansion and storage solutions.
Brazil’s Ministry of Mines and Energy (MME) has published Portaria Normativa No. 140 in the Official Gazette (DOU), establishing a financial compensation mechanism for wind and solar generators affected by curtailment events.
The regulation defines the conditions for recovering revenue losses caused by two types of curtailment events that occurred between Sept. 1, 2023, and Nov. 25, 2025. It also sets the eligibility criteria for generators seeking compensation.
The regulation confirms that only curtailment events classified as external unavailability – such as delays or limitations affecting transmission infrastructure – and those caused by electrical reliability requirements determined by Brazil’s National System Operator (ONS) will qualify for compensation.
Curtailment caused by energy oversupply remains excluded. These events occur when electricity generation exceeds system demand and are considered by the government to be a market risk assumed by generators.
