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Home / News / Politics & Regulation / Government sets physical guarantee limit for hydroelectric plants in LRCAP.

Government sets physical guarantee limit for hydroelectric plants in LRCAP.

GF represents the amount of energy that the plant can guarantee over time for commercialization purposes.
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  • Photo by Wagner Freire Wagner Freire
  • March 5, 2026, at 08:37 AM
1 min 33 sec read
Government sets physical guarantee limit for hydroelectric plants in LRCAP.
Segredo Hydroelectric Plant. Photo: Copel/Press Release

The Ministry of Mines and Energy published Ordinance No. 3.065/2026, defining the physical guarantee (GF) of the ten hydroelectric plants qualified to participate in the Reserve Capacity Auction (LRCAP), scheduled for March 18.

In practice, the physical guarantee represents the amount of energy that the power plant can ensure over time for commercial purposes.

Among the listed projects is the Coaracy Nunes Hydroelectric Power Plant in Amapá, currently under the control of Axia Energia (formerly Eletrobras). The project foresees the installation of two new generating units, with an increase of 91,8 average megawatts (MWmed) in the guaranteed capacity.

Meanwhile, the Segredo hydroelectric plant, owned by Copel and located on the Iguaçu River (PR), plans to add three generating units, increasing its guaranteed capacity by 56,3 MWmed.

Check out the complete list with the physical guarantee of each participating plant..

LRCAP covers the contracting of hydroelectric, natural gas, and coal-fired power plants. For hydroelectric plants, the ceiling price was set at R$ 1,4 million per MW per year.

For new thermal power plants, the maximum value is R$ 2,9 million/MW.year. For existing thermal power plants, the ceiling is R$ 2,25 million/MW.year.

The goal of the auction is to contract power to meet peak demand, as well as to reinforce the operational flexibility of the National Interconnected System (SIN). The market expects the government to contract more than 20 MW of power.

A new LRCAP (Long-Term Contract for Production and Energy Acquisition) is scheduled for March 20th, aimed at contracting power plants fueled by diesel and biodiesel. For products with supply starting in 2026 and 2027, the ceiling price will be R$ 1,6 million/MW.year. For the 2030 product, the maximum value has been set at R$ 1,75 million/MW.year.

all the content of Canal Solar is protected by copyright law, and partial or total reproduction of this site in any medium is expressly prohibited. If you are interested in collaborating or reusing part of our material, please contact us by email: redacao@canalsolar.com.br.

Amapá Axia Energy generating plants Copel Free Market Course Natural Gas and Biofuels) LRCAP 2026 hydro plants
Photo by Wagner Freire
Wagner Freire
Wagner Freire is a journalist graduated from FMU. He worked as a reporter for Jornal da Energia, Canal Energy and Agência Estado. Covering the electricity sector since 2011. Has experience in covering events such as energy auctions, conventions, lectures, fairs, congresses and seminars.
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