By Brazil Stock Guide – Brazil’s Northeast governors are pressing Congress to ensure fair compensation for renewable energy producers forced to cut generation to maintain grid stability. Piauí Governor Rafael Fonteles, who chairs the Consórcio Nordeste, said the issue—known as curtailment—has been undermining investment in the region’s wind and solar sectors.
Speaking at a Powershoring event on Thursday, Fonteles said compensation should be extended to renewables under the same rules applied to hydropower operators such as Companhia Energética de Minas Gerais (CEMIG3.SA) and Eletrobras (ELET3.SA).
“If the energy cut wasn’t caused by the solar or wind plant itself, there must be a rule ensuring these legally authorized producers aren’t penalized,” Fonteles said.
He argued that since generation licenses are granted by the government, the burden of system security should not fall on private operators.
“If cuts are needed for grid safety, these entrepreneurs must be compensated,” he added.
Fonteles also said Brazil must invest in transmission infrastructure and battery storage, financed domestically, to integrate the growing renewable capacity. He noted that despite lower debt levels, Northeastern states receive fewer federal infrastructure investments compared to the wealthier Southeast.
According to the governor, the region accounts for 14% of Brazil’s GDP and 27% of its population, yet receives only 9.9% of the country’s productive credit. He cited the “Chamada Nordeste” financing call, which offered R$10 billion in credit but attracted R$130 billion in proposals—most focused on renewable energy projects.
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