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ARTICLE · 09 DECEMBER 2025

MME Moves Forward With Structuring The 2026 Capacity Reserve Auctions

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On October 24, 2025, the Ministry of Mines and Energy ("MME") published Normative Ordinances No. 118/2025 and No. 119/2025, which establish the guidelines and procedures for the 2026 Capacity Reserve Auctions...

BrazilEnergy and Natural Resources
Débora Yanasse
Débora Yanasse
Bruno Salzano
Bruno Salzano
Alexandre Arlota
Alexandre Arlota
Luisa Tortolano Barreto
Luisa Tortolano Barreto
Julia Braga Ribeiro
Julia Braga Ribeiro
Pedro Katz
Pedro Katz
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Nayara Muniz Viana
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Guilherme Galiazzi
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Inside the 2026 LRCAP

On October 24, 2025, the Ministry of Mines and Energy ("MME") published Normative Ordinances No. 118/2025 and No. 119/2025, which establish the guidelines and procedures for the 2026 Capacity Reserve Auctions in the form of Power ("2026 LRCAP"). The 2026 LRCAP will take place following the cancellation of the auction initially scheduled for 2025, whose guidelines under Normative Ordinance No. 96/2024 were revoked by Normative Ordinance No. 106/2025.

The MME decided to hold two auctions, scheduled for March 18 and 20, 2026. The first will be dedicated to power availability products from natural gas-fired thermal plants (TPPs), coal-fired thermal plants, and expansions of hydropower plants (HPPs), in accordance with Ordinance No. 118/2025. The second will cover power availability products from fuel oil-, diesel-, and biodiesel-fired thermal plants, as set forth in Ordinance No. 119/2025.

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