The MME (Ministry of Mines and Energy) published this Monday (26) a decree that promotes adjustments to the guidelines and system of the first LRCAP (Capacity Reserve Auction in the form of Power) of 2026, scheduled to take place on March 18.
The auction aims to strengthen the country's energy security, guaranteeing sufficient power to meet the most critical moments of the SIN (National Interconnected System), such as periods of intense heat and peak consumption.
The auction will focus exclusively on contracting natural gas and coal-fired power plants, as well as expanding hydroelectric plants. Among the main changes established by the new ordinance They are:
Mandatory commitment to firm transportation of natural gas.
Entrepreneurs who own thermal power plants connected to the STGN (Natural Gas Transportation System) must submit a commitment agreement for contracting firm transportation services, guaranteeing at least 70% of the plant's operation at maximum capacity and continuously.
End of the requirement to hire entry capacity.
The rule removes the mandatory requirement to contract the input capacity of natural gas transportation, allowing thermoelectric projects to contract only the output capacity at the point of connection to the system. The Ministry of Mines and Energy (MME) states that the measure seeks to align the model with the economic logic of the bidding process and current regulations.
Sending technical and economic information
Entrepreneurs must report, by 12:00 PM on February 2nd, through the AEGE (System for Monitoring Electric Power Generation Projects), the parameters and prices that make up the CVU (Unit Variable Cost) of new or existing thermoelectric projects, in addition to the commitment agreement stipulated in Article 13 of MME Normative Ordinance No. 118/2025.
Storage facilities will have an unprecedented auction in 2026.
In addition to the auction scheduled for March 18, two other auctions are also planned for the first four months of the year. On March 20, a second auction will be held, focused on contracting power plants that run on fuel oil, diesel, and biodiesel.
Already in April 2026, a groundbreaking auction dedicated exclusively to battery energy storage systems (BESS) is planned, marking the first contracting of this type of technology under the country's capacity reserve model.
The Energy Storage Auction aims to increase the flexibility and reliability of the National Interconnected System (SIN), allowing the storage of surplus generation from intermittent sources, especially solar and wind, for later dispatch during periods of higher demand.
The expectation is for contracts lasting 10 years, with supply expected to begin in August 2028. Specific guidelines for contracting the batteries were submitted to Public Consultation No. 202/2025, conducted by the Ministry of Mines and Energy (MME).
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