Editorial
In September 2026, in the power generation segment, the Brazilian Electricity Regulatory Agency (Agência Nacional de Energia Elétrica – “ANEEL”) approved new rules to organize generation curtailments and established a trial period prior to their definitive application. In parallel, the Ministry of Mines and Energy (Ministério de Minas e Energia – “MME”) advanced the implementation of the financial compensation mechanism for wind and solar plants affected by generation curtailments that occurred between September 2023 and November 2025.
Also with respect to power generation, the MME submitted to public consultation the guidelines for the auctioning or extension of hydropower concessions that have expired or are close to expiration.
In the transmission segment, ANEEL proposed regulatory amendments to implement the National Policy for Access to the Transmission System (Política Nacional de Acesso ao Sistema de Transmissão – “PNAST”). The Agency also approved the tender notice for Transmission Auction No. 4/2026, with expected investments of BRL 8.9 billion.
With respect to storage systems, ANEEL opened a public consultation on the allocation of the costs of procuring battery systems through auctions. The MME, in turn, included storage solutions in the Capacity Reserve Auctions scheduled for 2027, 2028 and 2029, while the Energy Research Company (Empresa de Pesquisa Energética – “EPE”) is preparing a call for projects focused on hydraulic storage systems, with an emphasis on pumped-storage hydropower plants.
Finally, in the trading segment, ANEEL approved amendments to the rules applicable to the updating and accounting of the costs of thermal power plants that sell energy under regulated contracts.
Generation
ANEEL establishes new rule for generation curtailments and MME advances compensation mechanism
On October 6, 2026, ANEEL approved rules to organize mandatory generation curtailments, known as constrained-off. The new regulation aims to define how the National Grid Operator (Operador Nacional do Sistema – “ONS”) shall allocate these restrictions among the different types of generators, in accordance with the following criteria:
- Curtailments due to oversupply: the ONS shall preferably reduce the generation that provides the greatest cost relief to the system. The order begins with thermal power plants and imports whose reduction decreases system charges; continues with hydropower plants with storage capacity, inflexible thermal power plants, thermal power plants whose reduction is neutral in terms of charges and, subsequently, hydropower plants without storage and with turbinable spillage, wind and solar plants; and ends with thermal power plants and imports whose reduction may increase costs for consumers. The participation of hydropower plants with turbinable spilled energy in the allocation will be implemented gradually over four annual cycles;
- Curtailments due to electrical constraints: the ONS will physically reduce the plants that are most effective in relieving the grid constraint, whereas the effects will be allocated among eligible hydropower plants without storage, wind and solar plants, according to their influence on the constraint; and
- Self-producers: as a rule, the curtailment will only affect generation in excess of consumption.
The new rules will be subject to a trial period so that the sector may assess their effects before their definitive application. The simulation will begin 180 days after the publication of the resolution and will last 12 months, while full effectiveness will occur after 18 months. During this period, the ONS and the Electric Energy Trading Chamber (Câmara de Comercialização de Energia Elétrica – “CCEE”) shall disclose data and reports, and an independent audit will monitor the classification and determination of the events.
In parallel, with respect to the financial compensation of wind and solar plants for eligible curtailments that occurred between September 1, 2023 and November 25, 2025, on October 5 the CCEE disclosed the list of projects that expressed interest and met the criteria set forth in MME Normative Ordinance No. 140/2026. Inclusion in the list allows the process to proceed; however, the compensation remains subject to the execution of the Commitment Agreement (Termo de Compromisso).
Access the documents: ANEEL Vote, NORMATIVE RESOLUTION No. 1,170/2026
ANEEL opens public consultation on methodology for the extension of hydropower grants
On September 29, ANEEL approved the opening of Public Consultation No. 35/2026, which seeks input on a proposed normative resolution intended to regulate the criteria and methodology applicable to the extension provided for in Article 26, Paragraph 7, of Law No. 9,427/1996, applicable to hydropower projects that expand their installed capacity in a manner consistent with the concept of optimal use of the hydraulic potential.
The proposal uses the Discounted Cash Flow (“DCF”) method to calculate the additional grant term, which shall be limited to the period necessary to amortize the investments made. The methodology relates the recognized investment to the future economic benefits arising from the operation of the plant. In order to ensure the uniformity of the calculations, the proposal adopts public and reproducible regulatory parameters, including reference costs published by the EPE, the plant’s physical guarantee (garantia física), the reference unit net margin and the regulatory weighted average cost of capital of the generation segment.
Capacity expansions of plants subject to centralized dispatch may only support the extension provided for in Article 26, Paragraph 7, of Law No. 9,427/1996 if they produce benefits for the National Grid System (“SIN”), to be assessed by the ONS. The proposal does not apply to projects subject to the quota regime and seeks to prevent the same investment from being remunerated through two different mechanisms. This is because the additional grant term would be calculated to allow the amortization of the investment made in the expansion, through the operation of the plant for a longer period. Accordingly, during this additional period, the added capacity could not receive new remuneration, which would result in restrictions on participation in capacity reserve auctions during the additional grant term.
Finally, the draft proposal provides that hydropower concessions and authorizations shall be eligible for extension due to capacity increase if they (i) are in commercial operation; and (ii) have installed additional generating units consistent with the optimal use of the hydraulic potential. The regulation shall also cover extension requests not yet definitively decided and grants expiring in less than 60 months from the publication of the regulation. Holders of pending proceedings will have 30 days to adapt them to the new rules, while holders of grants with less than 60 months of remaining term may submit new requests within 210 days of the entry into force of the regulation.
The public consultation will receive contributions until October 30, 2026.
Access the documents: JOINT TECHNICAL NOTE No. 31/2026-SCE-SGM/ANEEL
MME opens public consultation on the auctioning and extension of hydropower grants
On September 22, the MME opened a public consultation on the treatment of hydropower plant concessions that have expired or are close to expiration. The proposal seeks to define the criteria that will guide the government’s choice between two alternatives: (i) extending the current concession or (ii) conducting a new auction. The contributions will support the preparation of a decree to regulate the matter in accordance with the amendments introduced by Law No. 15,269/2025 and may be relevant to 80 plants, with approximately 16.1 GW of installed capacity, whose grants expire by 2032, as identified by the MME.
In both cases, the new grant will adopt the Independent Power Production (Produção Independente de Energia – “PIE”) regime, under which the holder operates the plant at its own account and risk and may sell the energy in the free and/or regulated markets. Technical Note No. 39, submitted by the MME to public consultation, does not present a general conclusion in favor of either extension or auction, and indicates that the granting authority shall choose between the alternatives on a case-by-case basis.
In the event of an auction, the winner will be the bidder offering the highest payment for the grant, and the new holder shall indemnify the former concessionaire for reversible assets not yet amortized or depreciated, where applicable. In the event of an extension, the MME will take such investments made in reversible assets not yet amortized or depreciated into account when calculating the amount to be paid for the extension of the concession, and will assess whether the current concessionaire provides the service adequately.
The proposal adopts a reference term of 20 years for the new grants, which may be shorter at the discretion of the granting authority. The contracts may also provide for obligations relating to plant modernization, dam safety, operational flexibility and environmental compliance. In both the auction and the extension scenarios, the proposal provides for the payment of 50% of the value of the new grant upfront, with the possibility of paying the remaining balance in up to five annual installments.
In order to organize the analysis, the MME proposes to jointly assess, on an annual basis, the concessions expiring in the following three years, in addition to adopting transitional measures for grants expiring between 2026 and 2028. The public consultation will receive contributions until October 23, 2026.
Access the documents: Technical Note No. 39/2026/SAER/SE
ANEEL opens public consultation on new criteria for the operational classification of plants
On September 15, ANEEL opened Public Consultation No. 34/2026 to review the criteria for the operational classification of the plants that are part of the SIN. This classification determines the degree of participation of each project in the processes coordinated by the ONS, such as operation planning and scheduling, real-time supervision and coordination of interventions.
The proposed normative resolution submitted to public consultation aims to review the criteria used to assess the electrical and energy impact of plants on the security, reliability and performance of the SIN. The proposed model intends to take into account the growth of renewable generation, the increase in the number of projects connected to the transmission and distribution grids, and the need to expand operational coordination and the exchange of information between market agents and the ONS.
Among the proposed changes is the possibility of assessing plants jointly, rather than only individually. Accordingly, projects located in the same electrical region or whose aggregate behavior has a material impact on the system may form operating clusters and receive coordinated treatment. The consultation also addresses the reorganization of the modalities set forth in the Grid Procedures (Procedimentos de Rede) and the proportionality of the obligations and adaptation costs imposed on generators.
Interested parties may submit contributions until November 2, 2026.
Access the documents: JOINT TECHNICAL NOTE No. 18/2026-SGM-STD/ANEEL
ANEEL approves tender notices for Existing Energy Auctions A-1, A-2 and A-3
On October 6, ANEEL approved the tender notices for the 2026 Existing Energy Auctions A-1, A-2 and A-3, scheduled for November 13. The auctions will allow distribution companies to procure energy from projects in operation to meet the demand of their consumer market, and projects of any generation source may participate. Supply will begin in January 2027, 2028 and 2029, respectively.
The three auctions will be held sequentially and will adopt the descending hybrid format, that is, participants will initially submit the quantity and price of energy per submarket and, in the following stage, may reduce their prices through continuous bids.
The winners will enter into Energy Trading Agreements in the Regulated Environment (Contratos de Comercialização de Energia no Ambiente Regulado – “CCEARs”) by quantity, with a two-year supply term. Under this modality, the seller bears the risks related to differences between the contracted energy and the energy actually generated. The ceiling prices will be BRL 290/MWh in Auction A-1, BRL 270/MWh in A-2 and BRL 245/MWh in A-3, and will not be adjusted during the term of the contracts.
Access the documents: ANEEL Vote and Tender Notice.
PFANEEL accepts the accounting of distributed generation surplus in the Short-Term Market
The Federal Attorney’s Office before ANEEL (“PFANEEL”) concluded that ANEEL may regulate the treatment of surplus energy from distributed micro- and mini-generation (“MMGD”) in the accounting performed by the CCEE. The surplus occurs in periods in which the energy injected by consumer-generators exceeds the consumption of the distribution company’s captive market.
According to Legal Opinion No. 00186/2026/PFANEEL/PGF/AGU, ANEEL may allow such surplus to be represented as a negative component of the distribution company’s net load and settled in the Short-Term Market (Mercado de Curto Prazo – “MCP”) at the Settlement Price for Differences/Spot Price (Preço de Liquidação das Diferenças – “PLD”). Under this arrangement, the distribution company would act as the accounting representative of the regulated market, without becoming the owner of the energy. The credits held by consumer-generators under the Electric Energy Compensation System (Sistema de Compensação de Energia Elétrica – “SCEE”) would remain preserved.
The Attorney’s Office also accepted that the surplus may reduce the distribution company’s load for purposes of calculating charges and other regulatory parameters, provided that ANEEL assesses each component individually and allocates any revenue from the settlement to consumers or to tariff balance. Although it considers different regulatory alternatives to be legally viable, the opinion recommends that a Regulatory Impact Analysis, a public consultation and transition rules be carried out for measures with broader effects.
The matter remains under regulatory discussion at ANEEL, currently under review by the technical areas, and may result in amendments to the applicable rules after the conclusion of the technical analyses and of any public participation process.
Access the document: LEGAL OPINION No. 00186/2026/PFANEEL/PGF/AGU
Transmission
ANEEL proposes improvements to implement the National Policy for Access to the Transmission System
On October 6, ANEEL opened Public Consultation No. 36/2026 to adapt the regulatory rules to the guidelines of the PNAST, established by Decree No. 12,772/2025.
The PNAST changes the manner of permanent access to the Basic Grid (Rede Básica) and of increases in the contracted Transmission System Usage Amount (Montante de Uso do Sistema de Transmissão – “MUST”): instead of the individual analysis of requests in chronological order, the ONS shall gather and assess requests in periodic windows, called Access Seasons, during which interested parties will submit their demands for joint and coordinated analysis by the ONS. If the requests for a given connection point exceed the available capacity, access may be allocated through a competitive process.
Accordingly, ANEEL proposes, among other measures, to amend the Transmission Services Rules and Normative Resolution No. 1,017/2022 – which regulates the activities of the ONS –, in addition to requiring the ONS to submit, within 45 days, the necessary adjustments to the Grid Procedures.
Interested parties may submit contributions until November 22, 2026.
Access the documents: TECHNICAL NOTE No. 97/2026-STD/ANEEL, Decree No. 12,772/2025.
ANEEL confirms transmission auction with BRL 8.9 billion in investments
On September 22, ANEEL approved the tender notice for Transmission Auction No. 4/2026, scheduled to be held on October 30 at the headquarters of B3, in São Paulo. The auction will offer eight lots for the construction, operation and maintenance of transmission facilities in the states of Bahia, Goiás, Mato Grosso do Sul, Paraíba, Paraná, Rondônia and São Paulo.
The projects comprise 1,866 kilometers of new transmission lines and line sectioning, the continuation of 483 kilometers of existing lines and the addition of 12,694 MVA of transformation capacity. ANEEL estimates investments of BRL 8.9 billion and implementation periods between 42 and 60 months, counted from the execution of the concession agreements.
Lot 4 accounts for the largest investment, estimated at BRL 4.1 billion, and comprises transmission lines and substations in Goiás, Paraná and Mato Grosso do Sul. ANEEL divided the lot into two sub-lots, which will be auctioned separately and subsequently combined to identify the most economical proposal for the whole. In each lot, the winner will be the bidder offering the lowest Permitted Annual Revenue (Receita Anual Permitida – “RAP”), which corresponds to the regulated remuneration for the availability of the facilities during the concession.
With the auction, ANEEL continues the planned expansion of the SIN, through the procurement of facilities intended to increase transmission capacity and support the integration of new generation projects.
Access the documents: ANEEL Vote and Tender Notice.
Storage
ANEEL opens public consultation on the allocation of battery procurement costs
On October 6, ANEEL approved the opening of Public Consultation No. 37/2026 on the funding of the procurement of battery energy storage systems. The proposal regulates the Capacity Reserve Charge associated with Energy Storage Systems (Encargo de Reserva de Capacidade associado aos Sistemas de Armazenamento de Energia – “ERCAP-SAE”), which will be used to collect the funds necessary to pay for battery projects procured through auctions to provide services to the electric system.
The draft proposes that the ERCAP-SAE be paid by the holders of grants or registrations of generating plants that are CCEE agents, based on the energy actually associated with each agent in the calculation period. The proposal excludes distributed micro- and mini-generation and stand-alone storage systems from the allocation, since the latter do not qualify as generating plants. The exclusion concerns only the funding of the charge and does not prevent stand-alone systems from receiving the remuneration arising from any procurement in the Capacity Reserve Auctions. On the other hand, plants with co-located batteries remain, in principle, within the allocation base, but may pay proportionally less according to the degree of flexibility attributed to the project. The ONS will be responsible for classifying the projects annually for the application of the respective coefficients in the following year.
The proposal addresses only the ERCAP-SAE and does not amend the General Capacity Reserve Charge, which applies to the procurement of other solutions intended to ensure power capacity for the system. ANEEL intends to keep the two regimes separate and to avoid simultaneous charging for the same purpose. The amounts of the new charge will be included in the Capacity Reserve Power Account (Conta de Potência para Reserva de Capacidade – “CONCAP”), used to receive and transfer the funds related to such procurements.
The consultation will receive contributions until November 6, 2026.
Access the documents: vote regarding Public Consultation No. 37/2026
MME discloses auction schedule and EPE prepares call for hydraulic storage projects
On September 28, the MME published Normative Ordinance No. 143/2026, which establishes the estimated schedule of electricity auctions for 2027, 2028 and 2029. The ordinance provides, for the second half of each year, for Capacity Reserve Auctions in the form of power, which may consider electrochemical battery storage solutions, hydraulic storage systems, hydropower plants and thermal power plants.
The holding of these auctions will depend on the results of the studies prepared by the EPE and the ONS, which shall be submitted to the MME by April 30 of each year. The Ordinance also provides for auctions for the procurement of hydropower plants of up to 50 MW in the first half of 2027, 2028 and 2029, as well as auctions for the purchase of energy from new and existing projects and for supply to isolated systems.
In this context, the EPE presented a work plan to anticipate stages of a future competitive procedure for the procurement of services provided by hydraulic storage systems, with a focus on pumped-storage hydropower plants. The initiative is aligned with Resolutions No. 7 and No. 8/2026 of the National Energy Policy Council (Conselho Nacional de Política Energética – “CNPE”), which guide the identification of hydropower projects with storage capacity and establish guidelines for the study and potential competitive procurement of the services provided by such systems. In October 2026, the EPE is expected to publish instructions for the registration of projects, which will address their degree of maturity, technical characteristics, integration into the SIN, costs and implementation periods.
Beginning in November, the EPE is expected to open a call for projects to gather information on initiatives under development and to support the definition of evaluation criteria and guidelines for potential procurement. The call will be consultative and informative in nature and will not qualify projects for future auctions. The EPE will also work on updating cost databases and economic and financial parameters, on coordination with the MME and ANEEL, and on the assessment of socio-environmental aspects.
Access the documents: MME Normative Ordinance No. 143/2026, CNPE Resolution No. 7/2026, CNPE Resolution No. 8/2026 and EPE work plan for hydraulic storage systems.
Trading
ANEEL approves rules for updating and accounting for thermal power plant costs
On September 21, ANEEL approved new rules to update and account for the costs of certain thermal power plants that sell energy under regulated contracts, through the update of Module 16 of the CCEE Trading Rules. The measure applies to plants whose contracts do not provide for a specific mechanism for adjusting generation costs, and replaces the provisional procedure adopted until then with a permanent solution.
The amendments mainly address the Unit Variable Cost (Custo Variável Unitário – “CVU”), which represents how much the plant spends to produce each additional unit of energy, including expenses such as fuel. The rules also cover the Fixed Cost Portion (Parcela de Custo Fixo – “PCF”), related to the recovery of costs that do not vary directly according to the volume generated. The CCEE will periodically update these amounts and use them in the accounting of the plants’ revenues and expenses.
In this regard, ANEEL also adjusted the treatment of plants that report to the ONS a generation cost lower than the amount approved by the Agency. The change seeks to prevent such plants from recovering fixed costs in an amount higher than that actually accounted for in the Short-Term Market, in which the differences between contracted energy and energy generated or consumed are determined. The decision also corrects the calculation applicable to generation carried out by another plant in substitution for the plant originally scheduled for energy security reasons.
Access the documents: ANEEL Vote
Public participation
ANEEL | Open Public Consultations
Public Consultation No. 37/2026
Purpose: to obtain input for the improvement of the proposal submitted by the National Electric System Operator, of Regulatory Impact Analysis Report – AIR No. 5/2026 and of the draft Normative Resolution intended to amend ANEEL Normative Resolutions No. 1,009, of March 22, 2022, and No. 957, of December 7, 2021, as well as to adapt the model Capacity Reserve Power Use Agreement, in order to regulate the funding base and the allocation methodology of the Capacity Reserve Charge associated with the procurement of battery energy storage systems.
Contribution period: Until 11/06/2026.
Submission of contributions: Public Consultations – ANEEL
Public Consultation No. 36/2026
Purpose: to obtain input on the draft Normative Resolution and the revision of Modules 1 and 5 of the Transmission Services Rules, approved by REN No. 905/2020, under the original terms set forth in Technical Note No. 97/2026-STD/ANEEL.
Contribution period: Until 11/23/2026.
Submission of contributions: Public Consultations – ANEEL
Public Consultation No. 35/2026
Purpose: to obtain input for the definition of the criteria and methodology applicable to the term extension provided for in Article 26, Paragraph 7, of Law No. 9,427/1996, concerning the extension for a period sufficient to amortize investments in increased generation capacity, with a view to the optimal use of the hydraulic potential.
Contribution period: Until 10/30/2026.
Submission of contributions: Public Consultations – ANEEL
Public Consultation No. 34/2026
Purpose: to obtain input for the improvement of the proposed amendment to the Grid Procedures associated with the revision of the classification of the operating modalities of plants connected to the system, covering Submodules 1.2, 2.1, 2.4, 2.12, 2.14, 2.15, 3.1, 3.4, 3.5, 3.9, 3.10, 4.1, 4.2, 4.4, 4.5, 6.1, 6.9, 7.1, 7.2, 7.4, 7.11 and 7.13, under the terms of the drafts submitted by the ONS.
Contribution period: Until 11/02/2026.
Submission of contributions: Public Consultations – ANEEL
Public Consultation No. 33/2026
Purpose: to obtain input for the improvement of Module 3 of the Electricity Distribution Procedures in the National Electric System – PRODIST, in order to establish observability, operability and controllability requirements for Distributed Energy Resources (DERs), as well as of the Regulatory Impact Analysis Report – AIR, which addresses the application of interoperability requirements to the existing DER fleet.
Contribution period: Until 11/09/2026.
Submission of contributions: Public Consultations – ANEEL
Public Consultation No. 32/2026
Purpose: to obtain input for the improvement of the draft Tender Notice and Annexes of Auction No. 1/2027-ANEEL.
Contribution period: Until 10/26/2026.
Submission of contributions: Public Consultations – ANEEL
Public Consultation No. 31/2026
Purpose: to obtain input for the improvement of the Normative Resolution and the AIR Report, which establish the Market Service Indicator (Indicador de Atendimento de Mercado – IAM).
Contribution period: Until 10/19/2026.
Submission of contributions: Public Consultations – ANEEL
ANEEL | Open Requests for Input
Request for Input No. 30/2026
Purpose: to obtain input for the improvement of the data structure of the Distribution Company Geographic Database – BDGD, in compliance with the Electric Sector Asset Control Manual (MCPSE) and the SFF Data Manual, version 1.3.
Contribution period: Until 10/30/2026.
Submission of contributions: Requests for Input – ANEEL
Request for Input No. 23/2026
Purpose: to obtain input on amendments to Submodule 2.12 – Minimum supervision and control requirements for operation (Requirements) – in order to align it with the current needs of the electric sector, with effects on Submodule 4.6 – Analysis and processing of hydro-energy data and forecasting and generation of streamflow scenarios (Procedural).
Contribution period: Until 10/28/2026.
Submission of contributions: Requests for Input – ANEEL
Request for Input No. 22/2026
Purpose: to obtain input on the proposed amendments to Submodule 8.3 – Monthly Determination of Transmission Services and Charges and Sector Charges (Responsibilities and Procedural).
Contribution period: Until 10/28/2026.
Submission of contributions: Requests for Input – ANEEL
MME | Open Public Consultations
Public Consultation No. 235/2026
Purpose: Public Consultation on the draft Summary Report of the Ten-Year Energy Expansion Plan 2036 – PDE 2036.
Contribution period: Until 11/06/2026.
Submission of contributions: Public Consultations – MME.
Public Consultation No. 233/2026
Purpose: Proposed guidelines for the treatment of hydropower generation grants governed by Law No. 12,783, of January 11, 2013.
Contribution period: Until 10/23/2026.
Submission of contributions: Public Consultations – MME.