By Brazil Stock Guide – Eneva SA (ENEV3 BZ) received regulatory approval to begin commercial operations at its Azulão I natural gas-fired power plant in Brazil’s Amazonas state on Aug. 5, adding 295 megawatts of flexible capacity to the national grid.
Brazil’s electricity regulator Aneel authorized the startup through Order No. 2,899, according to a material fact released by Eneva on Aug. 4. The decision was published in the country’s official gazette.
The facility, located in the municipality of Silves, will be supplied with natural gas from Eneva’s concessions in the Amazonas Basin. Azulão I is the first asset within the Azulão 950 Complex to enter commercial service.
The plant secured a 15-year contract in Aneel’s 2021 Capacity Reserve Auction, providing annual fixed revenue of R$278.3 million. The figure is based on December 2025 prices and will be adjusted every January by Brazil’s benchmark IPCA inflation index.
Eneva will also receive variable revenue based on electricity generation. The reference unit variable revenue was set at R$1,200.87 per megawatt-hour as of August 2026 and will be adjusted monthly according to the JKM liquefied natural gas benchmark and foreign-exchange movements.
The structure gives the company an inflation-linked fixed payment while allowing generation-related compensation to reflect fluctuations in international gas prices and Brazil’s currency.
Azulão I will provide fully flexible and dispatchable capacity to Brazil’s National Interconnected System, known as SIN. Such plants can be called upon according to power-system requirements, helping support supply when other generation sources are unavailable or insufficient.
The project also expands energy supply in Brazil’s northern region by combining local gas production with electricity generation.
The Azulão 950 Complex includes Eneva’s natural gas concessions in Amazonas and the Azulão II thermal power project. Azulão II was contracted in Aneel’s second Capacity Reserve Auction in September 2022 and is scheduled to start operations in July 2027.
Azulão II is expected to generate annual fixed revenue of R$1.92 billion over a 15-year supply period. That amount is based on May 2022 prices and will be adjusted annually by the IPCA.
Aneel approved the consolidation of the Azulão II and Azulão IV authorizations in June. The process of unifying their regulated contracts remains underway to adjust Azulão II’s energy commercialization agreement.
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