Energy Newsletter: Auctions, Free Market and Climate Resilience – October 2025 

October 2025 marked regulatory advances in the Brazilian electricity sector with the approval of notices for the Existing Energy Auctions, definition of guidelines for the Capacity Reserve Auctions, and approval of PM 1,304/2025, which expands the free market to low-voltage consumers. The Transmission Auction moved R$ 5.53 billion, while new rules on climate resilience and Prudential Monitoring were debated by ANEEL. 

Our experts highlight: 

  • Approval of notices for the Existing Energy Auctions “A-1,” “A-2,” and “A-3” with supply beginning between 2026 and 2028;
  • MME guidelines for the 2026 Capacity Reserve Auctions covering thermoelectric and hydroelectric sources;
  • Transmission Auction No. 4/2025 with investments of R$ 5.53 billion and an average discount of 48%;
  • Approval of PM 1,304/2025 promoting the opening of the free market to low-voltage consumers and creation of the Supplier of Last Resort, among other aspects;
  • ANEEL Resolution No. 1,137/2025 on network resilience in the face of extreme weather events;
  • MME Public Consultation on Independent Verifier for distribution concessions. 

Read in full: 

This newsletter provides information about legal developments in Brazil to clients and members of Cescon, Barrieu, Flesch & Barreto Advogados. The content included herein is not meant to provide legal advice with respect to any specific matter. We do not undertake to update, supplement or modify the information contained herein.

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