In March 2026, Brazil's Leilão de Reserva de Capacidade (LRCAP) awarded 19.5 GW of capacity contracts, with 2.5 GW from hydropower expansion and 16.8 GW from fossil fuel-based thermoelectric plants—primarily 8 GW of new natural gas plants—while only 100 MW came from biofuel thermoelectrics. The 10-to-15-year contracts will generate BRL 515 billion in fixed revenues for the projects, though the auction faced criticism for excluding battery energy storage systems (BESS) despite an estimated 3 GW demand. The government raised the price ceiling by up to 100% within 72 hours without clear technical justification, prompting scrutiny from the Tribunal de Contas da União (TCU), which opened an investigation into the methodology. Critics, including former Petrobras president Jean Paul Prates and deputy Danilo Forte, argued the auction favored polluting sources over cheaper, cleaner alternatives like BESS, which could deliver power at less than 20% the cost of thermoelectrics. The TCU is set to rule on the auction's merits by May 21, 2026, the date originally scheduled for contract homologation, amid concerns over regulatory capture and lack of documented comparative analysis.