The biomass sector reacted with concern to the release of the new guidelines for the 2026 LRCAP (Capacity Reserve Auction), published last Friday (24). Cogen (Association of the Energy Cogeneration Industry) criticized the exclusion of biomass thermal plants and stated that it will request the MME (Ministry of Mines and Energy) to review the rules of the auction.
According to the organization, the exclusion of biomass plants goes against the historical pattern of incentivizing renewable and distributed generation, in addition to creating regulatory uncertainty. Industry stakeholders also view the government's change in direction with surprise, as the new model now allows the participation of biodiesel but excludes other biomass sources.
Potential and contribution of cogeneration
Cogen intends to open a dialogue with the Ministry of Mines and Energy (MME) to explain the advantages of biomass cogeneration, both for industry and for the National System Operator (ONS). The organization argues that these thermal power plants offer firm power, dispatchability, and low cost, with renewable generation available throughout the year.
In the previous auction, a technical note had justified the exclusion of biofuel-fired power plants by removing biodiesel. Now, with the inclusion of this source, the sector is demanding consistency from the government and requesting the reinstatement of plants powered by ethanol, sugarcane bagasse, biogas, biomethane, black liquor, forestry and agricultural residues.
The association emphasizes that biomass is strategic for ensuring energy security and sustainability, essential attributes for the energy transition and for the goals that Brazil intends to present during COP 30.
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