The second 2026 Reserve Capacity Auction in the Form of Power (LRCAP), aimed at contracting thermoelectric power plants fueled by diesel oil, fuel oil, and biodiesel, began at 10:00 AM this Wednesday. O Canal Solar Follow the match in real time, with updates throughout the day.
For products with supply starting in 2026 and 2027, the ceiling price was set at R$ 1,6 million per MW/year, with three-year contracts. For the 2030 product, the value reaches R$ 1,75 million per MW/year, with a supply term of ten years.
The purpose of LRCAPs (Local Contracting Regimes for Power Supply) is to contract power availability to reinforce the operational flexibility and security of supply of the National Interconnected System (SIN), especially in meeting peak loads in the early evening.
In total, the Energy Research Company (EPE) registered 38 projects, totaling 5.530 MW of capacity, with 2.483 MW from oil-fired plants and 3.047 MW from biodiesel plants.
How the dispute works
The selection of winners combines price and operational performance criteria. The main indicator is the Power Availability Price, calculated from the annual revenue offered by the agent in relation to the power made available. To this value is added a portion linked to the so-called "Factor A", multiplied by the Unit Variable Cost (UVC) of the plant.
In practice, the "A Factor" reflects the operational flexibility of thermal power plants – considering variables such as start-up time, shutdown time, and operational limits. The greater the flexibility, the more competitive the project tends to be in the bidding process.
The bidding process is divided into two stages. In the initial phase, entrepreneurs submit proposals based on their Annual Fixed Revenue and the amount of power offered, respecting the limits of their projects. The system then automatically calculates the availability price for each bid.
Once the deadline has passed, the bids are ranked from lowest to highest price, and only those sufficient to meet the demand for each product advance. At this stage, the flow limits of the National Interconnected System (SIN) at the connection points are also considered, which may restrict the classification of certain projects.
Next, the auction enters the continuous phase, when competition intensifies. The current price starts from the highest value achieved in the previous stage and begins to fall progressively with each round.
At this point, the bidders adjust their offers, indicating the amount of power they are willing to maintain given the price reduction. When there are no further changes within the established time frame, the bidding process ends, and the proposals are consolidated as either contracted or not contracted.
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