Brazil's Capacity Reserve Auction contracts 501.3 MW from oil and biodiesel thermal plants

Brazil's second Capacity Reserve Auction (LRCap) for 2026 concluded on March 20, 2026, contracting 501.3 MW of available power from oil and biodiesel thermal power plants. Termoceará, a subsidiary of Petrobras, was identified as one of the winning bidders in this material energy tender. The contracted capacity is distributed across three products, with supply commencement dates scheduled for 2026, 2027, and 2030. The auction registered an average price of R$ 831,251.52 per unit of capacity, reflecting a 50% discount from the initial reference price. This auction aims to bolster the country's energy security and grid stability by securing essential reserve generation capacity for the national power system.

Counterparts (3)

Developer

Termoceará

company

Fortaleza-based thermal power generation company operating 1.3 GW of natural gas-fired power plants in northeastern Brazil. Majority-owned by Eneva S.A., it focuses on baseload electricity supply to the national grid with long-term PPAs.

Offtaker

B

Brazilian Government

company

parent_company

Petrobras

company

Petrobras is a Brazilian state-owned oil and gas major involved in the exploration, production, refining, and distribution of petroleum, natural gas, and derivatives. With a significant presence across Brazil, the company is actively expanding its focus on energy transition initiatives, including renewable fuels and nature-based solutions.