Axia faces dispute over connecting 7 gas thermal plants

A dispute between Axia Energia and generator Origem Energia over electrical grid connection requirements could delay the startup of seven natural gas thermal plants contracted in Brazil's 2026 capacity reserve auction. Origem took the issue to the regulator Aneel, seeking guidance to resolve the divergence.

In a document sent to Aneel, Origem stated that Axia is conditioning the technical approval of the projects on an Access Opinion from the national grid operator ONS. Origem argues that under the updated transmission access policy, Pnast, that document is only required at a later stage. The affected projects total more than 477 megawatts of capacity and R$ 2.07 billion in planned investments, according to the power trading chamber CCEE.

The projects include the Pilar and Pilar Nova plants, scheduled to start operating on October 1, 2028, and the Manguaba I, II, III, IV, and V plants, scheduled for August 1, 2029. All seven plants will share a step-up substation and an 18-kilometer, 230-kilovolt transmission line connecting to the Rio Largo II substation, managed by Axia Energia Nordeste, formerly Chesf.

In a statement, Axia said it complies with all prevailing transmission regulations and maintains dialogue with market participants. The company also noted that it received no request for early execution of the transmission connection contract based solely on the preliminary access diagnosis.