The Ministry of Mines and Energy (MME) has granted concessions for 12 thermal power plants, including projects from Arxen (formerly NFE) and Eneva, ensuring a crucial boost to the country’s energy security.
The Ministry of Mines and Energy (MME) has taken a significant step for Brazilian energy security by issuing concessions for 12 thermal power plants. These ventures were winners of the Capacity Reserve Auction (LRCap) held in March this year, a vital mechanism to ensure the energy supply in the national interconnected system.
This measure represents a robust contribution to energy infrastructure, with projects totaling billions in investments and long-term contracts. The initiative strengthens the stability of the energy mix, ensuring complementarity to the growing participation of renewable energies in the country.
Arxen Projects: Strategic LNG in Focus
Two of the projects covered by the concessions were initially proposed by the then New Fortress Energy (NFE), whose assets in Brazil are now operated by Arxen, a company resulting from a recent spin-off.
Among them, UTE Lins 2 stands out, a thermal power plant with 732.7 MW of installed capacity. The project, with an estimated investment of R$ 2.5 billion, will ensure a fixed annual revenue of R$ 1.5 billion for 15 years, with supply beginning in 2031. Its operation will be based on liquefied natural gas (LNG), supplied by the GNL Gás Sul Terminal, which had its supply guaranteed by an agreement with Âmbar.
Another important Arxen project is UTE Novo Tempo Barcarena II, from Centrais Elétricas Barcarena S.A. (Celba). With 130.3 MW of capacity, the plant represents an investment of R$ 615.3 million and will have a fixed annual revenue of R$ 261.4 million for 15 years, starting in 2029. It will be supplied by the Barcarena LNG Terminal, integrating a complex that already includes UTE Portocém I and UTE Novo Tempo Barcarena (Celba 2), strengthening energy generation in the region.
The granting of these concessions is a pillar for energy security and regional development, especially in strategic areas such as Barcarena. The ability to provide reliable, long-term energy is fundamental for economic growth and for the resilience of our system, stated an industry expert.
Eneva Expands with 2.4 GW of Power
Eneva, one of the country’s leading energy companies, also had four of its ventures awarded concessions by the MME. Together, these projects total a significant installed capacity of 2.4 GW.
UTE Porto Norte Fluminense II B, with 291.3 MW of capacity, will require an investment of R$ 835.7 million, with a fixed annual revenue of R$ 477.4 million starting in 2031. Meanwhile, Jandaia 1, a 1.2 GW plant, projects a robust investment of R$ 5.8 billion and a fixed annual revenue of R$ 996 million, also with supply starting in 2031.
Completing Eneva‘s portfolio, UTEs Presidente Kennedy and Presidente Kennedy I, each with 441.6 MW of capacity, foresee investments of R$ 1.8 billion each and fixed annual revenues of R$ 481.3 million for 15 years, starting in 2031.
Diversity and Innovation Among Other Contractors
The MME also granted concessions to six other projects that will reinforce the energy supply starting in 2028 and 2029.
Delta Energia secured UTE William Arjona II, an 80 MW plant, with an investment of R$ 276.5 million and a fixed annual revenue of R$ 115.6 million for 10 years. Karpowership (KPS) obtained UTE Santana C, a 242.4 MW floating power plant, with an investment of R$ 72.5 million and fixed annual revenue of R$ 566.4 million.
Among the others, UTE São Mateus I stands out, with 41.2 MW, resulting from a consortium led by BYK Participações SA, with an investment of R$ 200 million. UTE Porto Norte Fluminense I D, from Engeko Engenharia e Construção, with 62.3 MW and an investment of R$ 178.8 million, also received the green light.
A point of innovation is UTE Cocal Biometano PPT, from Cocal Energia, the only biomethane-powered plant among the concessions. With 5 MW of capacity and an investment of R$ 48 million, the project demonstrates progress towards sustainable energy sources. Finally, UTE Suape IV B, with 123 MW and an investment of R$ 724 million, obtained its concession for supply starting in 2029.
Impact and Projections for the Energy Mix
The issuance of these concessions by the MME solidifies Brazil’s strategy to strengthen its energy security and ensure supply stability for the coming decades. Alongside the growth of renewable energies, LNG thermal power plants and, notably, biomethane, play a crucial role as reserve capacity and operational flexibility.
The substantial investments and long-term contracts, extending until 2031, reinforce the commitment to a robust and resilient Brazilian energy mix. This strategic move is essential to support the country’s economic and social development, ensuring a more sustainable and reliable energy future.
