Questions about price ceilings and exclusion of batteries generate legal reaction; impact on electricity bills could reach R$800 billion in 15 years
The LRCap (Capacity Reserve Auction), held on March 18, 2026, became the target of a coordinated offensive at Cade (Administrative Council for Economic Defense), the TCU (Federal Audit Court) and the MPF (Federal Public Ministry).
The contracting of 19 GW (gigawatts) of power is at stake, a volume that exceeds Itaipu’s capacity. However, this volume is contested by alleged billion-dollar losses to consumers and technical flaws in the process of choosing energy sources.
INQUIRIES AND IRREGULARITIES
According to information published by the newspaper The GlobeCade opened an administrative inquiry to investigate the allegations made by deputy Danilo Forte (PP) about the result of the dispute.
The congressman points out “technical inconsistencies and serious signs of harm to society” in the report prepared by the Chamber’s Mines and Energy Committee. The Federal Public Ministry asked the Court to immediately suspend the approval and signing of contracts, alleging irregularities in the process.
BILLIONAIRE COST AND CEILING PRICE
The dispute involves high values. According to the newspaper The State of S. Paulothe winning companies will have an estimated revenue of R$515 billion over the next 15 years due to availability, but the total cost passed on to consumers could exceed R$800 billion when the plants are effectively activated.
The event focused on contracting thermoelectric plants powered by natural gas and coal, in addition to hydroelectric plants, to guarantee system security during peak hours or dry periods.
One of the central points of the dispute is the increase in the ceiling price for plants. THE Estadão found that the MME (Ministry of Mines and Energy) revised the values just 72 hours after the original publication. This doubled the ceiling for existing plants from R$1.12 million to R$2.25 million per MW/year, a jump of 101%.
Minister Alexandre Silveira justified that the initial prices were a “error” and that maintaining the low value would not make the auction competitive.
THE DISPUTE BETWEEN ENERGY SOURCES
The dynamics of those who benefit and suffer are also being analyzed. On the one hand, large conglomerates such as Eneva, Petrobras and Âmbar Energia consolidated strategic positions.
Eneva, for example, is expected to earn R$134 billion in 15 years with 12 selected projects. Petrobras rehired 9 thermal plants with estimated revenue of R$44 billion.
These groups argue that the auction is essential for the stability of the system, especially to compensate for the intermittency of renewable sources.
The renewable energy sector and consumer associations, on the other hand, point to losses. The company Casa dos Ventos, owned by Mário Araripe, is one of the main critics of the exclusion of battery systems in the auction.
The argument is that the mass contracting of inflexible and polluting thermal plants empties the potential of clean and cheap sources. Furthermore, entities such as Abrace Energia estimate that contracting 10 GW would be sufficient. According to them, the volume of 19 GW is a costly excess that will be paid, in full, by the citizen on the electricity bill.
DEFENSE AND SUSPENSION
The Ministry of Mines and Energy refutes the suspicions and states that the process followed all technical and legal standards and was monitored by the TCU. The ministry says that battery technology will be dealt with in a specific auction in 2026.
Currently, Aneel (National Electric Energy Agency) is keeping approval of the auction suspended and awaiting a definitive court decision.
