Reuters

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24 Agustus 2025 pukul 00.00

Brazil plans to ask power plants to bid on supplying capacity

BRASILIA, Aug 22 (Reuters) - Brazil's government plans to solicit two rounds of bidding next year for hydroelectric and fossil-fuel thermal power plants to supply generating capacity, according to the country's official gazette published on Friday evening.

The plan aims to make the grid more reliable as intermittent power sources like wind and solar become a bigger part of the country's generating capacity. Eligible thermal plants run on coal, oil and natural gas.

The government wants to hold bidding by March, according to two sources at the Ministry of Mines and Energy who spoke on condition of anonymity. Public consultation has begun.

A similar prior initiative scheduled for June was postponed due to legal challenges raised by interested companies.

Major energy producers are expected to show interest, including state-run oil producer Petrobras (PETR3.SA), opens new tab, Ambar Energia, and Eneva (ENEV3.SA).

Despite Brazil's commitment to a green transition, government officials have argued that fossil-fueled power plants will play a key role in providing power stability.

The COP30 climate summit will be held in Brazil in November.


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