On July 23, Brazil's National Electric Energy Agency (ANEEL) approved amendments to Normative Resolution No. 1,000/2021, aiming to facilitate the grid connection of small distributed generation systems. The grid connection review (estudos de inversão de fluxo) is a procedure conducted by Brazilian power distributors to evaluate the ability of the grid to receive excess electricity, ensuring the system's stability and security. Distributors believe that too much grid-connected electricity affects grid stability and reduces electricity revenue, so they are not actively promoting the "grid connection review." As a result, the "grid connection review" has effectively become a significant obstacle to connecting distributed generation projects to the distribution network in Brazil.

ANEEL has provided three exemptions for the grid connection review of distributed generation:

1、Fast Track Mechanism

If consumers install small photovoltaic systems solely for self-consumption, with an installed capacity of less than or equal to 7.5 kW, they can apply for the fast track procedure, exempting them from the previously complex grid connection review (estudos de inversão de fluxo), thereby simplifying and speeding up the approval process.

If participating in the fast track approval, consumers must sign an agreement promising that the electricity generated, not exceeding 7.5 kW, will be entirely for self-use.

Agnes da Costa, director of the National Electric Energy Agency, said, "This will be a 'fast track' for connecting generation systems within a specific range, ensuring as many consumers as possible have the right to connect generation systems, reducing the electricity burden."

2、Exemption for Grid Zero Projects

Exemption from the grid connection review for micro and small distributed generation systems that do not inject energy into the power distribution grid (grid zero).

3、Exemption for Projects Meeting Free Standards

Micro distributed generation projects that meet the free standards of Normative Resolution No. 1000/2021, if their distributed generation power matches the user's unit consumption during the generation period, can be exempted from the grid connection review.

The Brazilian Photovoltaic Solar Energy Association (Absolar) assessed that the new rules would also help unblock new generation system connection applications obstructed by distributors, especially in the Minas Gerais state within the Cemig franchise area. According to Absolar's survey, the paralyzed distributed generation system connection applications in Minas Gerais involve investments of about 10 billion reais (equivalent to 13 billion yuan).

Bárbara Rubim, Vice President of Distributed Generation at the Brazilian Photovoltaic Solar Energy Association (Absolar), criticized Aneel's decision, arguing that the bill is too conservative. Projects not meeting the three standards set by ANEEL will still be restricted. The association will strive for legislation more favorable to the distributed generation industry.

The regulation has not yet been officially published and is expected to be published soon in the Brazilian government's Official Gazette (DOU). The new regulation will take effect after being published in the DOU.

Source：Observer for Overseas PV&Storage