A total of 1,539 solar and wind power plants, representing approximately 53 GW of installed capacity, have expressed interest in joining a compensation mechanism for curtailment, according to a statement issued by Brazil’s Ministry of Mines and Energy (MME) on August 11.

The figure represents the number of projects affected by curtailment that account for a significant share of the generation capacity considered eligible under the mechanism. MME released the data after the expression-of-interest period established by the regulations closed.

The mechanism was established by MME Normative Ordinance No. 140/2026, published in July. It covers curtailment events that occurred between September 1, 2023, and November 25, 2025, provided they were caused by external unavailability events or compliance with electrical reliability requirements. Curtailment resulting from energy oversupply is excluded from compensation.

How will compensation work?

The regulation allows owners of solar and wind power plants connected to the Basic Grid and Other Transmission Facilities (DITs) within the National Interconnected System (SIN) to participate.

Participation in the mechanism requires signing a commitment agreement with the federal government. One of the conditions is the waiver of rights supporting any judicial claims related to compensation for the eligible curtailment events.

Under the legislation, Brazilian grid operator ONS is responsible for calculating the eligible curtailment amounts and forwarding them to the Electric Energy Trading Chamber (CCEE). CCEE will calculate the compensation owed and adjust the amounts according to Brazil’s Broad Consumer Price Index (IPCA), from the date of each curtailment event or payment.

Ordinance No. 140 sets out procedures for updating, cleaning and classifying curtailment data, calculating compensation and administering payments.

Compensation amounts to be calculated

The participation of 1,539 plants does not represent the final compensation amount. The amount owed to each project will depend on the eligible curtailment events and the application of the methodology established by the government.

The regulation provides different treatment depending on the project’s contractual arrangements. For projects participating in the Profina ncentive program, eligible curtailment is valued at the contractual price in effect when the event occurred.

For other projects, the methodology takes into account, among other factors, the contracted energy price and the Difference Settlement Price (PLD).

CCEE will carry out the necessary calculations after the assessment phase is completed and the required information has been made available.

ONS recently warned that wind and solar curtailment could reach 40 GW annually by 2030 as renewable expansion outpaces demand growth and grid flexibility. The operator highlights transmission upgrades, storage, demand response, and better management of distributed generation as key measures to maintain system reliability.