INSUBCONTINENT EXCLUSIVE:
The sector, once a symbol of rapid growth, now struggles with technical, economic, and regulatory setbacks.The National Electric System
Operator (ONS) has imposed frequent curtailments, forcing wind and solar plants to reduce output
This measure, meant to stabilize the grid, has led to a 10% drop in wind generation in 2024, causing losses of R$1.6 billion for the
Transmission infrastructure has failed to keep up with the rapid expansion of wind projects, especially in the Northeast.This bottleneck has
left many new projects unable to connect to the grid, forcing companies to halt or cancel investments
The number of new wind farms dropped from 123 in 2023 to 76 in 2024.Installed capacity growth slowed to 3.3 GW, a 31% decrease from the
Major manufacturers, including General Electric and AES, have closed factories or left the market, leading to job losses and a shrinking
Weak demand growth has made it harder for wind projects to secure long-term contracts.Legal disputes over compensation for curtailed
generation have mostly ended in losses for wind companies, further discouraging investment
Regulatory uncertainty and shifts in U.S
financial risk for developers
sector had grown quickly from 2010 to 2022, but expansion outpaced grid upgrades and regulatory adaptation
infrastructure upgrades, regulatory reform, and restored investor confidence
