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Politics & Regulation

ANEEL Ignores court injunction and approves LRCAP thermal power plant auctions.

Approval occurs one day after a court decision suspended the entire process due to risks of excessive costs to consumers.

Canal Solar - ANEEL Ignoring a court injunction from the state of Ceará, the court approves the auctions for thermal power plants in the LRCAP project.

Photo: Flickr/ANEEL

The board of ANEEL (National Electric Energy Agency) unanimously approved this Tuesday (9) the remaining results of the LRCAPs (Capacity Reserve Auctions in the form of Power), held in March of this year, even after a decision by the Federal Court of Ceará that had suspended the approval process.

The approval occurred in a deliberative process and officially validates the bidding procedures, which contracted approximately 19 GW of power, mostly from thermal power plants fueled by natural gas, coal, and petroleum derivatives.

The Agency's decision comes amid a series of questions about the auctions. The process is the target of criticism from the TCU (Federal Court of Accounts), the MPF (Federal Public Prosecutor's Office), and consumer representative entities, which point to possible impacts of billions of dollars on electricity tariffs in the coming years.

Studies presented during the discussions estimate that the signed contracts could generate annual costs exceeding R$ 40 billion for consumers, with tariff repercussions starting in August 2026.

Abrace predicts a 10% increase in electricity bills following the LRCAP results.

ANEEL He considered that there was no legal impediment.

The approval occurred one day after the Federal Court of Ceará granted an injunction suspending the process. The decision was issued by Federal Judge Luis Praxedes Vieira da Silva, of the 1st Federal Court of Ceará, in a lawsuit filed by FIEC (Federation of Industries of the State of Ceará) and Sindienergia-CE.

The organizations argued that contracting thermal power plants for extended periods could generate excessive costs for consumers and solidify a situation considered difficult to reverse.

Even so, the ANEEL It was understood that there was no legal impediment to completing the approval. This position was supported by opinions from the AGU (Attorney General's Office) and the Federal Prosecutor's Office attached to the Agency.

Auctions contracted nearly 20 GW of power.

The decision of ANEEL The remaining results of two LRCAPs (Local Contracting and Access to Power) auctions, held in March of this year, have been approved. Together, the auctions contracted approximately 19,5 GW of power to reinforce the security of the SIN (National Interconnected System) in the coming years.

The first LRCAP, held on March 18, contracted 18,97 GW of power from hydroelectric and thermal power plants using natural gas and coal.

According to government data, the result represented an estimated savings of R$ 33,64 billion compared to the projected ceiling for the bidding process. The contracts are valid between 2026 and 2031.

The second auction, held on March 20, contracted 501,3 MW of power from plants fueled by diesel, fuel oil, and biodiesel. In this case, the estimated savings were R$ 1,83 billion, with contracts valid between 2026 and 2030.

LRCAPs aim to guarantee additional power to the SIN (National Interconnected System), increasing the reliability of the electrical system during periods of higher consumption or lower availability of generation from renewable sources.

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Henrique Hein
About the Author
Henrique Hein

He worked at Correio Popular and Rádio Trianon. He has experience in podcast production, radio programs, interviews and reporting. Has been following the solar sector since 2020.

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