Eneva backs disqualification of rivals in Brazil power auction

Eneva and Global are actively backing the disqualification of nearly 2 GW in thermal power plants awarded to Evolution Power Partners, known as EPP, and TermoG in Brazil's March capacity reserve auction. If the technical findings of electricity regulator Aneel are upheld by its board, both companies hold substitute projects that could be summoned to the qualification stage.

Eneva hired KPMG to evaluate the filings of the ION Consortia and TermoG. The audit supported decisions by Aneel's Permanent Auction Commission to exclude equity figures that were counted more than once or lacked sufficient proof of availability. KPMG also reviewed TermoG's UTE Garuva project, where parent company Mar Engenharia listed an equity of BRL 70.36 million, including BRL 65 million tied to the revaluation of two real estate properties. KPMG found insufficient accounting support for that valuation, reducing eligible equity to BRL 2.86 million, well below the required BRL 30.16 million.

Separately, Global filed an assessment by Rufino Consultoria showing that after stripping duplicated equity between member companies, the bidders faced equity shortfalls of BRL 6.34 million across five consortia and BRL 29.57 million at ION IV. Global also cited a July legal opinion from Aneel's Federal Attorney Office establishing that regulators may look beyond formal balance-sheet entries and that identical assets cannot be counted twice.

The contested awards cover nine plants totaling 1,685 MW across the six ION consortia and the 88.245 MW UTE Garuva plant, representing 1,773.245 MW in challenged capacity. Should Aneel's collegiate board confirm the disqualifications, Eneva stands in line with two projects totaling 790.95 MW: Porto Norte Fluminense I A, with 574.539 MW, and GDE Pará III, with 216.411 MW. A call to the qualification phase does not guarantee automatic contracting.