Will Brazilian Eletrobras’ thermal power auction fulfil its objectives?

In July 2021, Law 14,182 was enacted in Brazil, authorising the privatisation of Eletrobras, the largest power utility in Latin America. After being modified during the legislative process, the law incorporated requirements to be fulfilled by the government that were unrelated to the company or the privatisation process itself. The most controversial was the obligation to procure 8 GW of baseload gas-fired capacity through the new capacity auction framework. After the extensive regulatory activity, the first auction, which will award 2 GW in the North and Northeast regions, will take place on 30 September. In this insight report, we explore: • The auction rules and the registered projects • How developers can secure successful bids in the auction • Which factors will shape gas supply strategies • How the auction results can affect Brazil gas and power markets