Brazil's ANEEL approves rule setting order for power generation cuts

BRASILIA, Oct 6 — Brazil's National Electric Energy Agency (ANEEL) on Tuesday approved a new rule that sets the order for mandatory generation cuts at power plants, known as curtailment, closing a debate that began seven years ago under Public Consultation No. 45/2019.

For cuts caused by an oversupply of energy, the rule gives guidance to the National System Operator (ONS). It gives priority to cuts that bring the most cost relief to the system, sets the order among generation sources and limits situations that could raise charges, the agency said. Cuts will be shared among sources. The hydro component linked to turbinable spilled energy (EVT) will be phased in over four years, in steps of 25%, 50%, 75% and 100%.

According to ANEEL, a 12-month shadow period to simulate the rules' impacts will begin 180 days after the resolution is published. The rule will apply in full 18 months after publication.