Brazil's government has announced plans to conduct two rounds of bidding in 2026 for hydroelectric and fossil-fuel thermal power plants to enhance electricity generation capacity, as reported in the official gazette on Friday evening. The initiative seeks to strengthen the reliability of the national power grid, particularly as renewable sources like wind and solar contribute a growing share of the country’s energy supply. Thermal plants eligible for the bidding will utilize coal, oil, or natural gas.

Wind turbines are seen at Eneva power generation company in Barra dos Coqueiros in Aracaju, Sergipe state, Brazil October 8, 2024.

The bidding process is targeted to commence by March, according to two unnamed sources from the Ministry of Mines and Energy. A public consultation phase has already started to gather input on the plan. A previous attempt to hold similar bidding in June was delayed due to legal objections from participating companies.

Several major energy companies are anticipated to participate, including Petrobras, a state-owned oil company, as well as Ambar Energia and Eneva. Their involvement reflects the significant interest in securing contracts to support Brazil’s energy infrastructure.

While Brazil is advancing its transition to sustainable energy, officials emphasize that fossil-fuel thermal plants remain essential for ensuring a stable power supply. This approach aims to complement the increasing use of intermittent renewable sources, maintaining consistent electricity availability across the country.

In a separate development, Brazil is preparing to host the COP30 climate summit in November 2025, highlighting its ongoing commitment to addressing global environmental challenges.