How BNDES is dealing with curtailment
The forced cuts in the generation of wind and solar plants have impacted not only the revenue of companies in these sectors and their appetite for investments, but also the performance of BNDES. By far the largest financier of renewable projects in the country, the state bank began to price the so-called curtailment in its new loans, while taking steps to deal with the problem in those already…
The Brazilian Development Bank (BNDES) has started to factor in the risk of forced cuts in wind and solar power generation, known as curtailment, when approving new loans. According to Carla Primavera, BNDES' superintendent of energy transition and climate, the bank has taken measures to address the issue, including granting waivers and releasing reserve funds, but may suspend debt payments or renegotiate loans on a case-by-case basis.
In 2025, curtailment represented 19% of potential wind generation and 25% of solar production, with some plants experiencing cuts of over 70% or even 90%. The BNDES is awaiting regulation on curtailment treatment after 2025, and Primavera believes that addressing past cases will help companies, but future regulation is also needed.
The bank has already approved loans with curtailment risk factored in, using methods such as adjusting contract prices or requiring guarantees.
Written by urgent.news from Brazil Journal's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
