Ministry’s decision occurs after judicial disputes and suspension determined by the Federal Court
The (Ministry of Mines and Energy) officialized this Friday (4.ab.2025) the cancellation of the LRCAP (capacity reserve auction) that was scheduled for June 27. The decision was published in DOU (Official Gazette). Here’s (PDF – 106 kb).
The event aimed to hire new or existing thermal and hydroelectric plants, capable of providing firm power to the electrical system, focusing on increasing the country’s energetic safety in the advancement of intermittent sources such as solar and wind. The start of the operation would be from 2025 to 2030, with contracts from 10 to 15 years.
The notice was being the subject of court disputes of the bidding process. The most recent decision of the 17th Federal Court of the Federal District ordered the suspension of the auction until the public hearing on the subject was held.
On Friday (28.Mar), subsidiaries of obtained an injunction that suspended the so -called “factor A”, an index that measures the time the plant takes to start working when it is triggered. This criterion made it difficult for plants that take longer to go into operation, leaving them at a disadvantage in the auction.
After the decision favorable to Eneva, other agents also appealed to court and were able to interrupt the auction completely, with the argument that it would be necessary to open a new public consultation on the subject.
Understand
Contracting by capacity reserve aims to reinforce the safety of electric supply, regardless of direct consumption of the population. The auction sought to ensure stability to the system, especially in the face of the growth of intermittent sources, such as solar and wind.
These sources do not offer continuous production. The solar generation, for example, falls at dusk. Already the wind has greater production at night, but depends on seasonality and weather conditions.
From 2024 to 2028, the (National Electrical System Operator) projects greater need for thermal plant order to meet the peak demands. This scenario reinforces the importance of expanding the installed capacity of generation through specific auctions
