Brazil PV curtailment hits 14% as Voltalia seeks compensation deal
Voltalia has reported a 14% cut in its Brazilian PV output in the first half of 2025. The company expects curtailment to stay near 12% to 15% until 2027 and ease from 2028.
Image: Voltalia
Voltalia said renewable curtailment in Brazil will remain high until 2027 – between 12% and 15% – and will be lower from 2028. CEO Robert Klein said the sector is seeking an agreement with the government to obtain compensation for energy not injected into the grid by order of the national network operator, although the company does not consider this in its plans.
The French independent power producer (IPP) presented its growth plan for the coming years last week, focusing on strategic activities and geographies, with the company exiting some markets and businesses.
Growth is expected to be based on solar, wind, and storage, with the goal of having 50% of its photovoltaic capacity in co-located projects or reclaimed land by 2027. During the plan presentation, Klein said the company still expects compensation for the energy it has stopped generating in recent years amid the curtailment of renewables in Brazil.
In the first half of 2025, 268 GWh, or 14% of the company’s production in the country, were cut by order of the national operator. Initially, the company predicted a curtailment of 10% of its production in Brazil by 2025.
In its investor presentation, Voltalia highlighted three main areas of sectoral action to mitigate the effects of curtailment in the country: the working group with ONS, ANEEL, and other stakeholders addressing the reduction of outages and the reinforcement of transmission; the interface between government and industry discussing long-term solutions, compensation mechanisms, and a possible regulatory decree; and ongoing legal proceedings at the state and national levels.
Klein said curtailment levels will be high until 2027 – between 12% and 15% – and should begin to decline from 2028. He said the company still believes in the possibility of obtaining compensation, although it does not consider this in its business plan. Klein also said the sector as a whole has been intensely pursuing an agreement with the government.
The company has 2.5 GW of capacity in operation and approximately 700 MW under construction worldwide. In Brazil, as of June 30, the company had 773 MW of wind capacity and 750 MW of solar capacity in operation, in addition to 113 MW of rooftop solar under construction.
“In an environment still marked by cutbacks in Brazil, our half-year results remain solid, while highlighting the need to improve our operational performance and efficiency,” stated Klein. “This is precisely the objective of our spring plan, for which we are presenting today the conclusions of the diagnostic phase and the initial measures resulting from it. Spring aims to strengthen our operational efficiency and position us as an even more agile and competitive player, creating greater value for all our stakeholders in the face of rapid changes in the renewable energy market.”
Original source: PV Magazine
