By Brazil Stock Guide – Brazil’s Ministry of Mines and Energy on Thursday (16) published an ordinance approving the draft contract for the recontracting of the Candiota III thermoelectric power plant, operated by J&F Investimentos.
The move follows provisions established under Law No. 15,269, enacted in November, which allows for the extension of contracts for coal-fired power plants as part of broader efforts to modernize the country’s electricity sector.
According to the ministry, all contractual parameters — including duration, energy volumes and revenue calculation methodology — were structured in line with rules defined by Congress. “All contractual parameters, including deadlines, volumes and revenue calculation methodology, were structured following the rules defined by the National Congress,” the ministry said in a statement.
The draft Energy Reserve Contract (CER) was finalized after contributions from a public consultation earlier this year. A technical note indicates an initial fixed annual revenue of 859.7 million reais ($), based on January 2026 values.
This corresponds to a contract price of 540.27 reais per megawatt-hour (MWh) for energy generated by the plant.
The ministry said it sought to comply with legal requirements while minimizing costs for consumers, stating that it adopted “values aimed at achieving the lowest cost outcome for consumers in the plant’s contracting.”
The recontracting process still requires the formal signing of the agreement before it becomes effective.
Leave a Reply