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The Brazilian Association of Distributed Generation (ABGD) notes that, despite persistent regulatory challenges, investments in the sector are expected to be around 27 billion reais (about 4.4 billion dollars).
The distributed generation sector in Brazil continues to expand, with the expectation of ending the year with more than 35 GW of installed capacity, an approximate growth of 30% by 2024. The Brazilian Association of Distributed Generation (ABGD) projects that DG will expand between 20% and 25% in 2025, accompanied by an estimated private investment of R$ 27 billion, which will be allocated to the installation of new distributed generation systems.
The president of ABGD, Carlos Evangelista, believes that, despite the significant progress made in the distributed generation sector, there are still challenges related to new connections. He explains that some distribution companies have shown resistance, leading to denials or delays, normally justified by technical issues, such as the capacity to expand the network, as well as by bureaucratic barriers.
It also stresses that while some traditional networks need to be adapted to ensure stability of supply, the claim of electricity flow reversal is often unfounded and is misused as a justification for denying connection.
“To overcome the challenges of DG, it is essential to invest in the modernisation of distribution networks, implementing smart grid technologies that facilitate bidirectional energy management. It is also crucial to improve regulations, ensure transparency in information and establish clear rules and agile procedures for the connection of new distributed generation systems, as well as promote the technical training of the professionals involved,” concludes Evangelista.
Legislative agenda
The legislative landscape can also influence the development of the sector. At the moment, several bills are being proposed that could have a significant impact on the area. One example is Bill 4.831/2023, recently approved by the Chamber of Deputies, which seeks to limit the insertion of GD in the scope of action of electricity distributors. If approved, this bill could restrict the growth of the sector, says ABGD, harming thousands of Brazilians and limiting the right of more than 90 million consumers to produce their own energy.
On the other hand, Bill 576/2021 proposes to extend by 24 months the deadline for micro and small generators with a connection budget (access report) to complete their plants. This proposal seeks to correct the delays and problems caused by distributors, which have systematically prevented access holders from exercising their right to produce energy within the deadline established by Law 14,300/2022. |
