Ministry of Mines and Energy decision moves forward with new natural gas thermal plants, strengthening energy security.
The Ministry of Mines and Energy (MME) has taken a significant step toward consolidating Brazil’s energy infrastructure. The government recently issued authorizations for the construction and operation of two new natural gas-fired thermal power plants: UTE SFE Guarani V2 and UTE Tacaimbó I 2B. These projects, selected during the capacity reserve auction (LRCap) held in March of this year, are part of the 65 new power plants that secured contracts in the bidding process and were awaiting official approval to begin implementation.
UTE SFE Guarani V2, to be managed by São Francisco Energia S.A., will have an installed capacity of 155.8 MW, the exact power negotiated in the auction. To facilitate operations, the plant will require the construction of its own transmission system, featuring 6.5 kilometers of lines and a step-up substation. The plant operates under a strict schedule: an environmental installation license must be secured by October 2026, 20% of the investment must be verified by June 2027, civil construction must commence in April 2027, and test operations are slated for August 2028. Located in Camaçari, Bahia, the project represents an investment of approximately R$ 693.8 million and will guarantee a fixed annual revenue of R$ 349.9 million for 15 years.
Meanwhile, UTE Tacaimbó I 2B, under the responsibility of UTE Tacaimbó I Geração de Energia SA, will feature 97.5 MW of installed capacity, with 92 MW contracted via the LRCap. The municipality of Tacaimbó, in Pernambuco, will host this new facility. The project timeline expects an environmental license by March 2027, a 20% financial contribution by January 2027, and the start of civil works that same month. Test operations are scheduled for March 2028. The plant will also require a dedicated transmission system, including a substation and a 1.2 km line. The contract stipulates a fixed annual revenue of R$ 232 million for 15 years, with an estimated investment of R$ 437.7 million.
Boosting Brazil’s Energy Matrix
Granting these authorizations is a clear signal of the government’s commitment to diversifying and strengthening the national energy matrix. Natural gas, as a transition fuel, offers flexibility and reliability, complementing renewable sources and ensuring energy supply, especially during periods of lower wind or solar generation.
The LRCap has proven to be an effective tool for attracting investment into power generation infrastructure, ensuring the availability of capacity to meet the country’s future demand. The publication of these authorizations unlocks projects that are crucial for both energy security and economic development.
The construction of these thermal plants not only adds capacity to the system but also boosts the local economy through job creation and support for the supply chain of goods and services related to the energy sector. With test operations expected to begin between 2028 and 2029, these new energy sources are set to contribute significantly to meeting Brazil’s energy demand in the coming years.
