Brazil weighs performance bond for Suzano plant

Brazil's Ministry of Mines and Energy (MME) is assessing whether to require a performance bond from Suzano for the Celpav IV thermal power plant. The 18.53 MW project was one of the winning bids in the capacity reserve auction held in March.

Celpav IV won under the 2027 thermoelectric product as an existing asset that uses equipment previously operated by another plant, UTE Jacareí I. Because of that classification, the project originally declared zero investment, and the Permanent Auction Commission did not question the filing.

The situation changed after an MME review of the implementation schedule submitted by Suzano. The ministry determined that the schedule includes works and investments to deploy the unit, which would make financial guarantees mandatory once Suzano reports the planned spending amount.

In response to an inquiry from the ministry, energy regulator Aneel affirmed that the MME can demand the guarantee once investment figures are provided. Aneel noted that auction rules allow a deadline extension of up to 60 days to present the bond and issue the authorization grant without delaying commercial operations or power supply.