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Brazil’s Capacity Auction Draws TCU Probe as J&F Seeks to Void Key Results

The scrutiny could delay contract signing.

Overview

  • Brazil’s federal audit court said it will conduct an exhaustive review of the power‑capacity auction and may take corrective or precautionary steps to avoid irreversible acts.
  • J&F’s Âmbar Energia asked Aneel to cancel the 2026 and 2027 thermopower products, citing a bid‑system block at UTE Santa Cruz and the misclassification of UTE Araucária II as an existing plant.
  • Aneel logged the request and assigned it to a director for review, a step that could slow contract signing for all winners.
  • The auction contracted 19.5 GW of capacity, with many bids near the R$2.9 million per MW‑year cap and a CCEE estimate of about R$515.7 billion in contract revenue over the terms.
  • Capacity auctions pay plants to be on call during tight periods and the charges flow into electricity bills, which is why watchdogs and sector groups challenged the higher price caps, limited competition, and concentration of winners.