Eneva and Global intensify arguments for the disqualification of EPP‘s plants in the LRCap.
The dispute over the Capacity Reserve Auction (LRCap), held in March, has taken a new turn with the active involvement of Eneva and Global in advocating for the disqualification of nearly 2 GW of thermal power plants owned by Evolution Power Partners (EPP). The decision on disqualification, currently before the National Electric Energy Agency (Aneel), could directly impact the summoning of four plants belonging to Eneva and Global.
Both companies have presented independent technical analyses questioning the proof of financial capacity of the ION and TermoG consortia. According to these studies, the figures presented to demonstrate economic solidity were improperly used, which, if confirmed, would mean the proponents failed to meet the auction’s bidding requirements.
Eneva, for instance, hired the consulting firm KPMG to investigate the financial statements of the companies involved in the ION and TermoG consortia. KPMG‘s analysis reinforces the argument that it is not possible to consider the same financial assets for different companies within the same group or when their availability is not clearly proven. The conclusion is that, after the proposed adjustments, the companies would fall below the threshold required by the auction.
In parallel, Global presented an opinion drafted by Romeu Rufino, former Director-General of Aneel. This document also points to irregularities in cross-investments between companies within the consortia themselves, raising doubts about the actual financial capacity presented.
The Permanent Auction Committee (CPL) of Aneel has already commented on the case, recommending to the agency’s board the rejection of EPP‘s appeal and the maintenance of the disqualification of the six consortia in question. KPMG‘s analysis of TermoG, for example, indicated that the valuation of real estate presented as financial collateral was not properly substantiated, drastically reducing the considered assets.
Should the board of Aneel maintain the decision to disqualify EPP‘s plants, approximately 1.7 GW of installed capacity would be removed from the auction. Consequently, projects from Eneva and Global, totaling about 1.3 GW, would enter the list of potential candidates. However, a qualification stage would still be necessary to confirm their contracting. The final decision rests with the regulatory agency’s collegiate board.