Aneel Refuses TCU Agreement on Rio Grande Thermoelectric Plant

The Aneel refused to participate in an agreement at the TCU for the Rio Grande thermoelectric plant, citing lack of jurisdiction and exhausted processes, thus upholding a fine of R$ 235.6 million against Bolognesi.

The National Electric Energy Agency (Aneel) has made a firm decision that solidifies the stalemate surrounding the Rio Grande thermoelectric plant. The regulatory agency chose not to join a proposed consensual solution at the Federal Court of Accounts (TCU) for the Bolognesi project, a 1,238 MW natural gas plant that, despite being planned for operation in 2019, has never been implemented.

This stance by Aneel is central, as the agency formally declared to the TCU that it has no interest or jurisdiction for negotiation. Arguments presented indicate that the administrative processes concerning the revocation of the concession have already been exhausted, and no new relevant information would justify reopening the dialogue on a consensual basis.

The Troubled History of the Rio Grande Power Plant

The Rio Grande Power Plant (UTE Rio Grande) was conceived to operate in the municipality of Rio Grande, in Rio Grande do Sul state, with an installed capacity of 1,238 MW. Utilizing natural gas, the venture won the competitive A-5 auction in 2014, with the expectation of supplying 38 distributors for 25 years starting in January 2019.

The project even envisioned the construction of a terminal for receiving and regasifying Liquefied Natural Gas (LNG), promising to expand the supply of natural gas in the state and strengthen energy generation. However, the construction never materialized, plunging the electric sector into a lengthy dispute.

In October 2017, Aneel revoked the plant’s concession after identifying not only critical delays in the schedule but also a broader assessment of the venture’s infeasibility. Issues such as the lack of financial arrangements, absence of a gas supply contract, and no access permit were decisive for the agency’s decision.

Following the revocation, Bolognesi sought alternatives, attempting to transfer the project to groups such as New Fortress Energy and, later, the Spanish conglomerate Cobra. However, Aneel maintained its position, ratifying the revocation of the authorization in 2020, after finding that the proposals offered neither technical nor financial viability.

The Dispute Extends to the Judiciary

The complex situation of the Rio Grande Power Plant escalated to the judicial arena in 2021. In May 2024, the 2nd Federal Court of Rio Grande declared the acts of revocation of the concession by Aneel null and void, demanding that the agency reestablish the authorization and evaluate the transfer of control.

In a development in December 2025, the Regional Federal Court of the 4th Region (TRF4) confirmed the nullity but imposed restrictions on the decision’s effects. It ordered a new review of the 2017 reconsideration request, without, however, ordering the automatic reestablishment of the concession or the transfer of the venture to the Cobra group.

Currently, the effects of the judicial rulings favorable to the Rio Grande Power Plant are suspended by a decision from the Superior Court of Justice (STJ). Aneel emphasizes that the suspension will last until the judicial dispute reaches a final, unappealable judgment.

Aneel reiterates that the arguments presented to justify negotiation have already been extensively analyzed and rejected by the agency in previous instances, demonstrating the stagnation of new administrative prospects for the case.

The Maintained Fine and Next Steps

On a parallel and equally significant front, Aneel rejected, on September 22, another attempt by Bolognesi to renegotiate the fine imposed for non-compliance with the plant’s implementation schedule. The penalty amount, R$ 235.6 million, had been applied in April 2024 and ratified in July of the same year.

The company administratively requested the reversal of the sanctioning process, arguing, among other points, about the impacts of the TRF4 decision on the grounds for the fine. However, the Aneel board concluded that the request did not present new facts or circumstances that would justify a new review after the July decision.

Aneel emphasizes that the review of a sanctioning process should not serve as a new instance to re-discuss theses already administratively decided. Furthermore, the agency reiterated that the fine has legal independence from the revocation of the concession, stemming directly from the non-fulfillment of obligations undertaken in the 2014 auction.

The scenario for the Rio Grande Power Plant and Bolognesi remains in suspense, with Aneel‘s refusal to seek a consensual agreement reinforcing its uncompromising stance in the regulation of the electric sector. The final fate of the project will depend on decisions from the highest judicial levels.

This case serves as a stark reminder of the challenges and rigorous oversight in the energy generation environment in Brazil, highlighting the importance of compliance with terms for the security and development of the energy matrix.

The pursuit of clean and sustainableenergy solutions, such as the natural gas proposal, faces regulatory and legal obstacles that demand constant vigilance from investors and public authorities.