Energy in Brazil: expansion brings new challenges
The expansion of renewable generation, further liberalization of the free market and growing demand from large consumers are putting new pressure on Brazil’s power infrastructure and regulatory framework.
The challenges were discussed by industry executives, sector associations and legal experts at the Lefosse Energy Day 2026, held in São Paulo on Wednesday (26). The event brought together representatives from across the power sector to examine the changes shaping Brazil’s energy market.
Opening the event, Lefosse managing partner Rodrigo Junqueira and energy partner Raphael Gomes highlighted the structural changes underway in the sector and the importance of regulatory discussions for the development of the market.
The expansion of renewable generation has increased pressure on Brazil’s transmission system, making curtailment — restrictions on generators’ ability to inject power into the grid — an increasingly relevant issue for market participants. A panel moderated by Lefosse energy partner Bruno Crispim and dispute resolution partner Diogo Ciuffo addressed the contractual and litigation risks arising from generation cuts, as well as disputes involving power purchase agreements and transmission concessions.
Battery energy storage systems (BESS) were also at the center of discussions, given their potential to manage the intermittency of renewable sources and increase flexibility in the power system. Moderated by Lefosse energy partner Pedro Dante, the panel brought together representatives from Santander, Itaú BBA, Álava Energia and WEG to discuss the regulatory and financing challenges involved in developing storage projects in Brazil.
On the demand side, the growth of data centers and other large electricity consumers is adding another layer of pressure to the power system. The panel, moderated by Raphael Gomes, brought together executives from Ascenty, Voltalia Brazil, Statkraft, Renova Energia and ODATA to discuss self-production models, long-term power purchase agreements (PPAs) and the infrastructure needed to connect new large loads to the grid.
The regulatory framework and the expansion of the free electricity market were also discussed by representatives of ABEEólica, ABIAPE, ABRAGE, ABRACEEL and ABRATE, who addressed the need for investment in transmission infrastructure and the challenges associated with a more competitive power market.
The discussions highlighted a sector undergoing significant change, in which the energy transition is no longer simply about expanding renewable generation, but also about addressing the regulatory, contractual and infrastructure challenges involved in integrating new sources of supply and new patterns of demand into Brazil’s power system.
Pictured: Raphael Gomes, Bruno Crispim, Rodrigo Junqueira e Pedro Dante
