Government begins preparations to hold the capacity auction

With the aim of contracting power from hydroelectric and thermoelectric plants, the competition is scheduled to take place on August 30
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Public Consultation will receive contributions until March 28th. Image: Pixabay

O MME (Ministry of Mines and Energy) started the Public Consultation to discuss the guidelines for the next Capacity Reservation Auction. Contributions can be sent until March 28, 2024, in accordance with the Ordinance No. 774, published in the Official Gazette of the Union this Friday (8).

Scheduled to take place on August 30, this will be the second capacity auction in Brazil. The first took place in 2021, resulting in the hiring of 4.6 GW (gigawatts) of power.

This type of auction aims to contract power for the electrical system from energy sources. thermoelectric generation It is hydroelectric, known as dispatchable sources.

The values and quantity to be contracted will still be determined by the ministry. Three products will be traded:

  • Thermoelectric power for 2027 (new and existing), without operational inflexibility. Seven-year contract, starting July 1, 2027;
  • Thermoelectric power for 2028 (new and existing), without operational inflexibility. Fifteen-year contract, starting January 1, 2028;
  • Hydroelectric power for 2028: expansions that were not extended or tendered under the terms of Law No. 12,783/2013. Fifteen-year contract, starting January 1, 2028.

Generation projects interested in participating in the auction must register their projects with the EPE (Energy Research Company). The deadline for registration has not yet been defined.

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Wagner Freire
Wagner Freire is a journalist graduated from FMU. He worked as a reporter for Jornal da Energia, Canal Energia and Agência Estado. He has covered the electricity sector since 2011. He has experience in covering events, such as energy auctions, conventions, lectures, fairs, congresses and seminars.

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