The Minister of Mines and Energy, Alexandre Silveira, expressed concern about the impacts of the judicialization on the Capacity Auction, scheduled for June 22.
In an interview given last Tuesday (18), after an event of the ABRAPCH (Brazilian Association of PCH and CGH), Silveira highlighted that the participation of diesel-powered plants in the event generates technical and legal uncertainties, which could compromise the country's energy security.
According to the minister, the initial understanding was that the auction should only include natural gas and biodiesel plants. However, some diesel-powered plants are seeking to qualify for the auction, committing to use biodiesel.
The viability of this transition, as well as the availability of inputs to meet demand, are still points of debate within the government. “We have doubts both about the condition of guaranteeing the necessary volume of biodiesel and about the real intention of these plants to comply with this transition,” said Silveira.
The MME is evaluating the possibility of appealing the court decision that allowed the inclusion of diesel-powered plants. The deadline for appeals ends on Friday (21).
The minister stressed that the government is not against expanding participation in the auction, as long as the sources are properly separated. “If technically it is understood that the decision must be complied with, there is no problem. But we believe that this auction should not include diesel oil,” he pointed out.
Another point of concern raised by Silveira is energy security. He warned that legal disputes could delay an essential process to ensure the balance of the electricity sector, especially considering the need to increase the supply of power to the National Interconnected System (SIN).
“We cannot compromise on this issue. If necessary, I am willing to go to court in person to discuss the speed of the trial and the importance of an agile and efficient solution,” he said. “There is no objection to dialogue to build a path that meets the technical requirements of the auction and fulfills its main purpose: guaranteeing Brazil’s energy security.”
The Capacity Reserve Auction aims to contract additional power to guarantee the stability of the electrical system, especially given the growing participation of intermittent renewable sources in the energy matrix.
Last Friday (14), the MME communicated the deadline extension for presentation of the CVU (Variable Unit Cost) and the technical report on fuel verification from the ANP (National Agency for Petroleum, Natural Gas and Biofuels).
That same day, the original deadline for registering for the auction ended. However, on Thursday (13), the minister of the STJ (Superior Court of Justice), Sérgio Kukina, granted a preliminary injunction in a writ of mandamus filed by a group of diesel-powered thermoelectric plants, suspending the exclusion of their thermoelectric plants from the auction.
The exclusion of plants was based on the maximum CVU criterion, established by MME Ordinance No. 100/2025, which reduced the limit from R$2.636,99/MWh to R$1.711,18/MWh.
The companies argued that this restriction was illegal, as it limited competition without adequate technical basis and disregarded a previous decision by the STF (Superior Federal Court).
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