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Energy and Natural Resources Newsletter | October 2026
November 5th, 2026
In order to keep our clients informed about the current landscape of the main energy and natural resources sectors in Brazil, we have prepared the Energy Newsletter, a monthly bulletin with the main news of the energy market.
This information channel is the result of the unification of our “Oil & Gas” and “Power” newsletters, designed in the context of the energy transition that is being targeted in Brazil, and prepared to be a complete source of information about the dynamic Brazilian energy market in the oil, natural gas, electricity and renewable energy sectors.
Enjoy reading!
This newsletter is for informative purposes only and does not constitute legal advice for any specific operation or business. For more information, please contact our team of lawyers.
HIGHLIGHTS
ANP approves 11 new exploratory sectors and 501 blocks in the Equatorial Margin
On October 2, 2026, the Brazilian National Agency for Petroleum, Natural Gas and Biofuels (“ANP”) approved the delimitation of 11 new exploratory sectors in Brazil’s Equatorial Margin and the configuration of 501 blocks within these areas. The new sectors cover approximately 380,000 km², in waters deeper than 3,000 meters, across the Barreirinhas, Ceará, Foz do Amazonas, Pará-Maranhão, and Potiguar basins. The measure results from the expansion of the outer limits of the Brazilian Continental Shelf, recognized in March 2025. The resolution also revised the boundaries of three existing sectors.
The new sectors were classified as a new exploratory frontier. To define the boundaries, the agency conducted a socio-environmental assessment based on the location of conservation units in the region. The conclusion was that there is neither overlap nor proximity that would compromise the proposed configuration. As none of the areas is currently under contract, the update does not affect existing exploration and production contracts. According to the ANP, the objective is to establish a territorial basis that will expand geological and geophysical knowledge of this portion of the Brazilian coastline.
The resolution is technical in nature and does not automatically include the blocks in the Open Acreage. For any of these areas to be offered in a bidding round, a specific assessment will be required, following the applicable regulatory procedure and subject to the analysis and opinion of the competent authorities. Nevertheless, the prior delimitation provides greater predictability for pre-contractual activities, such as seismic, geochemical, and multi-physics surveys. These data will support sector planning and future governmental decisions regarding the development of these areas.
Learn more: ANP approves 11 new exploratory sectors and 501 blocks in the Equatorial Margin
First Federal Government natural gas auction sells the entire volume offered and raises BRL 377 million
On October 22, 2026, Pré-Sal Petróleo S.A. (“PPSA”) held, through an electronic platform operated by the Electric Energy Trading Chamber (“CCEE”), the inaugural auction for the sale of natural gas owned by the Federal Government, open exclusively to basic industry consumers. The entire volume offered, 1.1 million m³/day for supply in 2027, was awarded to 23 industrial companies from five sectors. The auction raised BRL 377 million, above the starting price, estimated at approximately BRL 335 million. Bids totaled 1.53 million m³/day, 39% above the volume offered. Until then, PPSA sold this gas to Petrobras at the wellhead; this was the first time it was offered to the market.
The average premium was USD 2.44, with uneven competition among segments: the glass sector paid the highest average premium (USD 4.01), followed by steelmaking, metallurgy, and mining (USD 3.09), while chemicals and petrochemicals (USD 1.93), ceramics (USD 1.91), and fertilizers (USD 1.82) remained close to the minimum. According to PPSA, using the September average Henry Hub as the base date, the gas is expected to reach industry at approximately USD 5.83. The MME estimates reductions ranging from 38% (glass) to 57% (nitrogen fertilizers) compared with the current price of approximately USD 12 paid by industry. Delivery will take place at the outlet of the Itaboraí Gas Processing Unit, within the Boaventura Energy Complex, and buyers will be responsible for transporting the gas to their facilities.
The deadline for appeals against the session ended on October 24. Winning bidders must submit the second-stage documentation by November 27, and the agreements are expected to be executed in the first half of December. For 2027, PPSA plans a new auction offering 1.8 million m³/day, which will require a new MME ordinance that may resize the quotas and include sectors not covered in this round. The result is also expected to inform the debate on the ANP’s gas release program, aimed at reducing Petrobras’s concentration in the natural gas supply.
Learn more: PPSA publishes notice for the first Federal Government natural gas auction dedicated to industry and Federal Government gas auction sells entire volume and raises more than the starting price
ANP releases the results of OPC6 and OPP4
On October 7, 2026, the ANP held the public session for the submission of bids under the 6th Cycle of the Open Acreage Concession (“OPC6”) and the 4th Cycle of the Open Acreage Production Sharing (“OPP4”). During the session, the winning bidders for exploratory areas located in several Brazilian sedimentary basins were announced.
Under OPC6, 49 exploratory blocks were awarded across the Potiguar, Tacutu, Recôncavo, Parnaíba, Tucano Sul, Campos, and Ceará basins, as well as three marginal accumulation areas. The auction generated approximately BRL 3 billion in signature bonuses, with minimum exploratory investments estimated at approximately BRL 1.58 billion.
Petrobras was the highlight of the round, accounting for approximately 99% of the total signature bonuses collected under OPC6. The company acquired 19 exploratory blocks, including strategic areas in the Campos Basin and, in consortium with QatarEnergy, assets in the Ceará Basin. Other participants included Petrom, Eneva, Origem Energia, PetroReconcavo, Alvopetro, Aguila Energia, and Tucano Serviços, demonstrating the diversity of interested agents in both onshore and offshore opportunities in Brazil.
Under OPP4, seven blocks located in the Campos and Santos basins were awarded, with total signature bonuses reaching BRL 530.5 million and minimum investments expected to total BRL 778.4 million during the exploration phase. The areas for which winning bids were declared were Magnetita, Hematita, Azurita, Jade, Cruzeiro do Sul, Rubi, and Rodocrosita blocks.
The results reinforce the attractiveness of the Brazilian oil and natural gas exploration and production market, particularly in areas with significant exploratory potential in the Campos, Santos, and Ceará basins. In addition to the substantial revenues generated, the rounds signal the continuation of investments in the sector and the interest of both domestic and international operators in expanding their presence in the country.
Learn more: List of Bidders for the 6th Cycle of the Open Acreage of Concession and List of Bidders for the 4th Cycle of the Open Acreage of Production Sharing
CONFAZ raises ICMS on diesel, gasoline, and LPG as of February 2027
On October 27, 2026, the National Council for Fiscal Policy (“CONFAZ”) approved new ICMS amounts levied on fuels, effective as of February 1, 2027. The tax on diesel and biodiesel will increase from BRL 1.17 to BRL 1.30 per liter (an 11.1% increase); on gasoline and anhydrous fuel ethanol, from BRL 1.57 to BRL 1.64 per liter (4.5%); and on liquefied petroleum gas (“LPG”), from BRL 1.47 to BRL 1.54 per kilogram (4.8%). ICMS Agreements No. 127 and No. 128 were published in the Federal Official Gazette on October 28, 2026.
This is the first update to fuel ICMS amounts since the global shock in oil and oil product prices caused by the war in the Middle East; the previous update was approved in September 2025 and took effect in January 2026. Notably, the federal tax relief on gasoline authorized by Complementary Law No. 235 is limited to fiscal year 2026. Distributors, importers, and resellers should monitor the interplay between the state tax increase and the potential phase-out of federal measures.
Learn more: States raise taxes on diesel, gasoline, and cooking gas as of February
ANP opens call for contributions to review lubricant grease and oil registration rules
On October 1, 2026, the ANP launched a call for contributions to review ANP Resolution No. 804/2019. The regulation governs the registration of lubricating greases and oils marketed in Brazil and establishes the obligations of producers, importers, and registration holders. Interested parties may submit contributions until November 2, 2026, by completing a questionnaire made available by the agency.
The consultation covers both technical and operational matters. On the technical side, the ANP seeks stakeholder input regarding higher minimum performance requirements for lubricants, as well as specific criteria for biolubricants and circular economy products. The agency is also requesting information on the scope of mandatory registration, the effectiveness of anti-fraud mechanisms, and the operation of the electronic product registration system.
The information received will serve as the basis for the preparation of a Regulatory Impact Assessment (RIA) Report, which will support the drafting of a future resolution. This is therefore a preliminary stage of the regulatory review process, and the current requirements remain in force. The initiative allows the agency to gather the views of industry participants before assessing potential changes to registration criteria and regulated parties’ obligations. For producers, importers, and registration holders, this represents an opportunity to influence the design of the new regulatory framework from its inception.
Learn more: ANP opens call for contributions to review lubricant grease and oil registration rules
ANP submits revision of operational safety rules in E&P to public consultation
On October 2, 2026, the ANP approved the opening of a 90-day public consultation period, followed by a public hearing, regarding the revision and consolidation of operational safety rules applicable to oil and natural gas exploration and production activities. The proposal covers the safety regime for facilities and the Technical Regulation of the Operational Safety Management System (SGSO). The draft regulation already incorporates adjustments arising from a previous round of public participation, which received 933 contributions. It will once again be submitted to stakeholders prior to final deliberation.
The revision aims to consolidate into a single regulatory instrument provisions that are currently spread across five separate resolutions. These regulations govern: (i) offshore drilling and production facilities; (ii) onshore production facilities; (iii) onshore pipelines; (iv) subsea systems; and (v) well integrity. The proposed text takes into account the different phases of facilities’ life cycles, the possibility of extending their useful life, changes of operator, and updated classification criteria for onshore facilities.
The proposal also incorporates the agency’s experience in inspections and accident investigations. In addition, it considers new digital systems and international regulatory references. The objective is to adapt the requirements to the industry’s current profile without compromising the protection of human life and the environment or the integrity of facilities.
Learn more: Public Consultation and Public Hearing No. 21/2026
Joint ordinance establishes criteria for calculating CBS and IBS rates on fuels
On October 5, 2026, the Ministry of Finance and the IBS Management Committee (“CGIBS”) published Joint Ordinance MF/CGIBS No. 14/2026. The regulation establishes the methodology for calculating the tax burden used to determine the rates applicable to the Contribution on Goods and Services (“CBS”) and the Tax on Goods and Services (“IBS”) on fuels. The rules will apply to CBS as of 2027 and to IBS as of 2029.
For CBS, the rate applicable in 2027 may not exceed the sum of the benchmark direct tax burden and the benchmark indirect tax burden. The direct burden is based on the rates in force between July 2025 and June 2026, adjusted by an additional 3%, corresponding to the 2027 inflation target. The indirect burden is calculated based on the volume of each fuel consumed in Brazil in 2025, adjusted by the IPCA inflation index from January to July 2026 and likewise increased by 3%.
For IBS, the ordinance establishes a gradual transition. The rates for each fuel will be capped at an increasing percentage of the sum of the benchmark direct and indirect tax burdens: 10% in 2029; 20% in 2030; 30% in 2031; 40% in 2032; and 100% from 2033 onward. The benchmark direct IBS burden will be calculated monthly from July 2027 to June 2028. The resulting amounts will be adjusted to July 2028 prices using the variation of the IPCA plus the 2029 inflation target to be defined by the National Monetary Council (“CMN”). The benchmark indirect burden will take into account ICMS and ISS levied on goods and services acquired throughout each fuel’s supply chain, including production, importation, distribution, and commercialization stages. Only amounts not recoverable as tax credits will be included in the calculation, based on 2027 data and adjusted by the IPCA from January to July 2028, plus the 2029 inflation target.
The regulation represents an important step in implementing the Tax Reform on Consumption for the fuels sector. Producers, importers, distributors, and resellers should closely monitor the next stages of the process, particularly the publication of effective rates and the evolution of adjustment indices.
Learn more: Joint ordinance establishes criteria for calculating CBS and IBS rates on fuels
ANP approves studies of the West Jubarte Block for a potential offering under the production sharing regime
On October 9, 2026, the ANP approved the geological and economic studies relating to the West Jubarte Block, located in the Campos Basin within the Pre-Salt Polygon. The review forms part of the Unified Strategic Calendar for Geological and Economic Assessments 2026-2027. This is a preparatory step for the potential inclusion of the area in the Open Acreage Production Sharing. The studies will now be submitted to the Ministry of Mines and Energy (“MME”).
The block covers approximately 690 km² and has been classified by the agency as having high exploratory potential. The technical work comprised three components: a geological and geophysical assessment of the area; a preliminary review of technical and economic feasibility; and the definition of the block’s geographic configuration. Prior to considering exploration risks, the estimated average total volume is in the order of tens of millions of barrels of oil equivalent. The proposed configuration includes the northern extension of Caxaréu. Areas covered by the Production Individualization Agreement relating to the Jubarte extensions were excluded.
However, the approval does not guarantee that the entire area assessed will effectively be offered in a bidding round. The definition of which blocks will be offered under the production sharing regime falls within the authority of the National Energy Policy Council (“CNPE”), upon proposal by the MME and after consultation with the ANP. Accordingly, the agency has concluded its technical assessment phase, but the effective offering of the block will depend on subsequent decisions by those authorities.
Learn more: ANP concludes studies of the West Jubarte Block for possible offering under the production sharing regime
Government expands subsidy for imported diesel and renews BRL 2.12 per liter support
On October 9, 2026, the Federal Government announced an additional subsidy of BRL 1.40 per liter for imported diesel. The benefit will remain in force for 30 days and is expected to cost approximately BRL 1.6 billion. The additional amount will be added to the BRL 2.12 per liter subsidy already applicable to both domestically produced and imported diesel. As a result, support for imported diesel will reach BRL 3.52 per liter. The measure aims to maintain the economic viability of imports and ensure adequate supply in the domestic market.
The differentiated treatment is based on Provisional Measure No. 1,391/2026, which authorizes different subsidy amounts for producers and importers. The new additional subsidy forms part of a broader package that also includes tax relief measures for gasoline and increased support for hydrated ethanol producers.
The measure was adopted amid rising international prices for refined petroleum products and temporary supply constraints in the Brazilian market. According to ANP data, diesel S10 imports projected for October totaled approximately 1.17 million m³, of which roughly 68% were expected to originate from the United States.
Subsequently, on October 27, 2026, the Ministry of Planning and Budget announced the renewal, for one additional month, of the BRL 2.12 per liter subsidy, whose ordinance had expired the previous day. The estimated cost is approximately BRL 10.5 billion per month, to be covered by extraordinary revenues from oil exploration.
Learn more: Federal Government extends tax relief for gasoline and ethanol and Government will renew the BRL 2.12 diesel subsidy for one month
ANP proposes to simplify accreditation of institutions for R&D&I projects
On October 9, 2026, the ANP approved the Regulatory Impact Assessment report and the opening of a 45-day public consultation period, followed by a public hearing, regarding amendments to ANP Resolution No. 917/2023. The regulation governs the accreditation of research institutions eligible to carry out projects funded through the Research, Development and Innovation (“R&D&I”) clause in oil and natural gas exploration and production contracts. The proposal seeks to reduce bureaucracy, eliminate duplicative information requirements, and shorten review timelines while maintaining the agency’s oversight mechanisms.
Currently, the ANP conducts a detailed review of each institution’s infrastructure, equipment, technical staff, and research lines. Under the proposed model, this process would be replaced by a simplified accreditation procedure based on information obtained from public databases, including the Institutional Information Registry, the Lattes Curriculum Platform, and the National Research Infrastructure Platform. Registration of the units affiliated with each institution would remain mandatory, and the agency would retain its powers to monitor, inspect, and audit projects. The draft regulation also establishes transition provisions to avoid disruption to ongoing projects.
The board of directors further instructed the technical area to evaluate, during the consultation process, alternatives to make the procedure predominantly registry-based and automated. The revision is particularly relevant for institutions that receive a portion of the mandatory investments required under E&P contracts. Depending on the contractual framework, the R&D&I clause requires the allocation of 0.5% or 1% of gross production revenue to research, development, and innovation activities.
Learn more: ANP proposes to simplify accreditation of institutions for R&D&I projects
PetroChina, CNOOC, and Petrobras win PPSA’s 10th Spot Auction
On October 28, 2026, PPSA held the 10th Federal Government Oil Spot Auction. Approximately 4.5 million barrels from the Búzios field were offered. PetroChina, CNOOC, and Petrobras were the winning bidders, jointly acquiring approximately 3 million barrels. ExxonMobil, Galp, Prio, TotalEnergies, and Equinor also took part in the auction.
PetroChina was awarded Lot 1, a 1-million-barrel cargo from the P-79 platform. CNOOC secured Lot 2, also consisting of 1 million barrels, produced by the FPSO Almirante Tamandaré. Petrobras acquired Lot 3, comprising two cargoes of 500,000 barrels each from the P-75 and P-77 platforms. All cargoes sold are scheduled for lifting in the first half of December. Lots 4 (P-76) and 5 (FPSO Almirante Barroso), scheduled for lifting in the second half of December, were not sold in this round. PPSA carried them over to the next auction, for which no date has yet been set.
Learn more: PetroChina, CNOOC, and Petrobras win PPSA’s 10th Spot Auction
NEWSLETTER
Institutional
House of Representatives: Urgent consideration approved for bill changing battery cost-sharing rules
The Brazilian House of Representatives approved, on October 13, 2026, the request for urgent consideration of Bill (“PL”) No. 3,716/2026, which proposes to remove generators’ exclusive obligation to bear the costs of contracting battery energy storage systems as capacity reserve resources. With this decision, the bill may be voted on directly by the plenary, without prior review by the committees. The request for urgent consideration was submitted by Congressman Danilo Forte (PP-CE). The bill was introduced by Congressman Arnaldo Jardim (Cidadania-SP).
MME: Ministry prepares regulations for the offshore wind legal framework
The Ministry of Mines and Energy (“MME”) intends to submit to the Chief of Staff’s Office, within the coming weeks, the draft decree that will regulate Law No. 15,097/2025, which established the legal framework for offshore wind generation, with publication expected still in 2026. The regulation is expected to govern the operational process for the allocation and granting of maritime areas, including matters related to the Prior Interference Declaration (“DIP”). The Energy Research Office (“EPE”) is also preparing the Single Portal for the Management of Offshore Areas for Power Generation (“PUG”), which is expected to centralize applications and information, including georeferenced data. Following the enactment of the decree, the government intends to move forward with the allocation of areas deemed suitable for projects, taking into account environmental, logistical, fishing, tourism, and National Interconnected System (SIN) connection constraints.
ANEEL: Director points to a trend of reduction in electricity tariffs with the Tax Reform
Gentil Nogueira, Director of the National Electric Energy Agency (“ANEEL”) and rapporteur for the agency’s Tax Reform regulatory proceedings, stated that the tax changes indicate a structural trend toward a reduction in end-user electricity tariffs, the effects of which are expected to become clearer in the 2027 tariff-setting proceedings. According to the Director, January may see a temporary increase due to the beginning of the collection of the Contribution on Goods and Services (“CBS”), for which the rate has not yet been defined, but the elimination of PIS/COFINS may produce a downward effect throughout distributors’ tariff adjustment processes. The actual impact, however, will depend on the applicable rates and the tax situation of each concessionaire and should be assessed individually in the respective tariff proceedings.
New PAC: Rules make battery procurement and operation subject to proof of local content
The Interministerial Committee on Innovation and Procurement of the Growth Acceleration Program (“CIIA-PAC”) formalized the local content requirements applicable to battery energy storage systems that will participate in the Capacity Reserve Auction in the form of Power (“LRCAP”) with local content requirements, scheduled for December 2, 2026. The projects must use systems manufactured in Brazil in accordance with the accreditation requirements of the Brazilian Development Bank (“BNDES”) and demonstrate, before ANEEL and through BNDES certificates, compliance with such requirements in two stages: prior to the execution of the Capacity Reserve Power Contract (“CRCap”) and during implementation, as a condition for commercial operation. Oversight procedures are expected to be established in the auction notice.
Eco Invest Brazil: Government approves BRL 49.95 billion in investments for green value chains
The Ministries of Finance and Environment and Climate Change approved the results of the 5th Eco Invest Brazil auction, which provides for BRL 49.95 billion in investments aimed at six value chains linked to the ecological transition. The auction received 23 bids from six financial institutions, totaling demand of BRL 181.3 billion. In the energy sector, BRL 5.2 billion was allocated to advanced green fuels, biogas, and biomethane, while critical minerals, batteries, and electromobility received BRL 6.5 billion, of which BRL 4.55 billion is expected to be directed to batteries and energy storage systems. The public capital mobilized totals BRL 13.2 billion, with financial institutions responsible for mobilizing the remainder of the projected investments.
ABRACEEL: Association launches self-regulation program for energy traders
The Brazilian Association of Energy Traders (“ABRACEEL”) announced a self-regulation program aimed at establishing, monitoring, and enforcing standards of governance, ethics, operational prudence, and compliance among energy trading companies, complementing existing legislation and sector-specific regulation. The structure will be independent from the association’s management and will include its own supervisory bodies, committee, and board, responsible for monitoring, initiating, and adjudicating proceedings, as well as imposing sanctions. The program also provides for a code of conduct containing 13 practices subject to oversight, including commitments related to compliance with settlement obligations in the Short-Term Market, the provision of adequate information to consumers, and the prohibition of price manipulation. Participating companies will receive a seal certifying their participation in the program and compliance with its rules.
AUCTIONS
MME: Ministry plans annual capacity auctions through 2029
The MME plans to hold at least one Capacity Reserve Auction in the form of Power (“LRCAP”) per year through 2029. The expectation is that, starting in 2027, the auction will allow the participation of battery energy storage systems, pumped-storage hydropower plants, as well as conventional hydropower and thermoelectric plants (including those fueled by biomethane, biogas, biofuels, and waste). Annual auctions for Small Hydropower Plants (“SHPs”) are also planned.
MME: Ministry establishes schedule for seven transmission auctions between 2027 and 2029
The MME published a schedule for seven transmission auctions during the 2027-2029 period, scheduled for April and October of each year, in addition to an extra auction in December 2027. The new regulation makes the inclusion of certain facilities in the auctions contingent upon the prior execution of the Transmission System Use Agreement (“CUST”) with the National Electric System Operator (“ONS”). For facilities intended for free consumers whose need is contingent upon load confirmation in the Electricity Transmission Grant Plan (“POTEE”), the CUST must be executed by the consumer itself.
ANEEL: Agency approves notices for the first battery energy storage auctions
ANEEL approved Notices No. 05/2026 and No. 06/2026 for the procurement of capacity from new Energy Storage Systems (“ESSs”), with auctions scheduled for December 2 and 4, 2026. The contracts will have a supply commencement date of August 1, 2028, and a term of 15 years. Notice No. 05/2026 establishes local content requirements, while Notice No. 06/2026 does not include this requirement. The investment benchmark was updated from BRL 9.8 million/MW to BRL 6 million/MW, also reducing the required guarantees. The ESSs must deliver capacity for up to four hours per cycle, with up to two cycles per day and a limit of 366 cycles per year.
EPE, ONS, and ANEEL: Technical note published and revised on connection capacity for storage LRCAPs
EPE, ONS, and ANEEL published the first revision of Technical Note NT-ONS DPL 0095/2026, used to define the remaining connection capacity of projects participating in the 2026 storage LRCAPs. The revision incorporates a correction submitted by the transmission company responsible regarding the physical availability for new connections to the 69 kV busbar at the Milagres Substation and the short-circuit breaking capacity of a circuit breaker at the same substation, at 230 kV. General textual adjustments were also made, without changing the margin values of the candidate busbars.
EPE: Company publishes methodology for determining the price cap for storage auctions
EPE published a technical note establishing the methodology for defining the assumptions and parameters of the Reference Marginal Cost (“CMR”) for the 2026 Capacity Reserve Auctions for Storage. The study considers battery system characteristics, investment costs, operating costs throughout the contractual period, local content requirements, and potentially available financing conditions. The CMR will serve as a reference value for determining the maximum price for the auctions, without establishing the final contracted price, which will result from the competitive process.
BNDES: Bank accredits first battery energy storage system with local content for the LRCAP
The BNDES accredited the first Energy Storage System (“ESS”) that meets the local content requirements applicable to the National Storage LRCAP, scheduled for December 2, 2026. Accreditation by the Special Fund for Financing Machinery and Equipment (“FINAME”) certifies compliance with the local content requirements, for which the initial minimum threshold is 15%, but does not replace the project’s technical qualification by the Energy Research Office (“EPE”).
REGULATIONS
MME: List of eligible power plants advances implementation of compensation for generation curtailments
The Electric Energy Trading Chamber (“CCEE”), at the request of the MME, published the list of solar and wind power plants eligible for the compensation mechanism for generation curtailments established under Law No. 15,269/2025 and regulated by MME Normative Ordinance No. 140/2026. The applications were reviewed by the ONS and cover eligible curtailments that occurred between September 1, 2023, and November 25, 2025. Eligibility allows the project to proceed within the mechanism, but the effects of participation depend on the execution of the respective Commitment Agreement.
See MME Ordinance No. 140/2026
ANEEL: First battery integrated with a solar power plant in Brazil begins testing
ANEEL authorized the commencement of trial operation of the energy storage unit at the Sol de Brotas 7 solar power plant, owned by Statkraft, in Uibaí, Bahia. The system has 1.25 MW of installed capacity and began testing on October 2, 2026. The decision represents a new stage in the first project authorized by the agency to integrate a co-located Energy Storage System (“ESS”) with a solar power plant in the country.
ANEEL: Agency establishes Open Energy and enhances market opening rules
ANEEL approved new rules for the migration of Group A consumers to the Free Contracting Environment (“ACL”) and established Open Energy, a system that will allow consumers to access and, subject to their consent, share standardized consumption, billing, and metering data. The implementation will be gradual: within 12 months, standardized access to data and the CCEE platform for comparing products and prices must be made available, and within 24 months, data sharing through Application Programming Interfaces (“APIs”) must be implemented. For units in subgroups AS and A4 covered by the simplified model, the standard migration period will be reduced from 180 to 90 days. The regulation also governs operational separation and communication between distribution utilities and energy retailers belonging to the same economic group.
ANEEL: Agency registers first closed-loop pumped-storage hydropower project
Through Order No. 3,960/2026, ANEEL registered the first application for authorization of a Pumped-Storage Hydropower Plant (“UHR”). The Salto Timbé do Sul UHR, owned by AMUR Ltda., will have an installed capacity of 5.2 MW and will be located in Timbé do Sul, Santa Catarina. The registration is governed by Normative Resolution No. 1,161/2026 and is valid for a non-extendable period of four years, allowing the developer to proceed with measures such as environmental licensing prior to authorization. Because it operates in a closed-loop system and does not directly interfere with the continuous flow of a water body, the project is classified as an Energy Storage System (“ESS”), rather than as a conventional hydropower plant.
EPE: Company publishes registration rules for hydropower energy storage systems
EPE published the Instructions for Requesting Registration and Technical Qualification of Hydropower Energy Storage Systems (“SAH”), advancing the preparation of these projects for participation in future electricity sector auctions. The document establishes requirements and procedures for the submission of information through the AEGE System and governs the technical, environmental, and grid access documentation, as well as the elements required for the technical characterization of the projects.
EPE: Roadmap proposes strategies to enhance the climate resilience of the electricity sector
EPE published the Roadmap for Strengthening the Resilience of the Brazilian Electricity Sector in Response to Climate Change, consolidating the systemic assessment of climate risks affecting electricity generation, transmission, and demand. The study developed a qualitative and quantitative methodology based on the interaction among hazard, exposure, and vulnerability, applied to different climate scenarios and time horizons. Based on the identified risks, the roadmap organizes measures into six complementary strategies, encompassing anticipation, preparedness, response, and recovery in the face of adverse events.
SYSTEM OPERATION
ONS: Operator proposes extending the demand response sandbox until 2030 and increasing flexibility
The ONS considers it necessary to extend and enhance the demand response regulatory sandbox, with the continuation of the availability product from 2027 onward and the extension of the experimental regulatory framework, potentially until December 31, 2030. The proposal seeks to enable new procurement cycles and test different product configurations in light of the SIN’s capacity and flexibility needs. The proposal was submitted to ANEEL and forms part of the proposed amendments to Authorizing Resolution No. 12,600/2022.
ONS and CCEE begin testing Cobre, a model that could replace Newave and Decomp
The CCEE and ONS began, within the scope of the PMO/PLD Technical Committee, testing a new computational model derived from Cobre and developed by ONS to replace the functionalities currently performed by Newave and Decomp. The timeline presented to companies in the sector envisages the possibility of the model officially entering into operation in January 2028, subject to the satisfactory completion of the testing phase and the necessary regulatory approvals by mid-2027.
ONS: Operator considers use of operating reserve capacity in November 2026 and in 2027
The ONS anticipates the possibility of using the Operating Reserve Capacity in November 2026 and from January 2027 onward, should higher-demand scenarios occur in combination with adverse hydrological conditions. The forecast was presented at the meeting of the Electric Sector Monitoring Committee (“CMSE”) held on October 7, 2026. Operating Reserve Capacity corresponds to the margin of capacity kept available to respond to load variations and contingencies in the power system. To preserve this capacity at hydropower plants that participate in automatic generation control, ONS may determine the supplemental dispatch of thermoelectric power plants.
CCEE: Chamber modernizes registration platform for managing multiple representations
The CCEE updated its registration platform to improve the management of market participants that use different representatives for their assets. Accounting representation will now be automatically established upon execution of the Retail Trading Agreement (“CCV”), regardless of the registration status of the represented party, and the platform will recognize different representatives associated with assets of the same company. The update also creates a dedicated area for the management of accounting and operational representations. According to the CCEE, the change does not modify the parties’ contractual responsibilities and does not apply to processes conducted under the simplified model through APIs.
STUDIES
MME and MPOR: Study assesses the readiness of Brazilian ports for offshore wind projects
The MME and the Ministry of Ports and Airports (“MPOR”) presented a study prepared in partnership with the Danish Energy Agency on the capacity of Brazil’s port infrastructure to support the future offshore wind industry. Developed within the scope of Law No. 15,097/2025, the study analyzed Large Offshore and Nearshore projects and identified six ports with the greatest potential: Pecém; Suape; Porto Central; Açu; Imbituba; and Rio Grande. The study concluded that all of them can be further developed through investments in infrastructure, operational areas, quay reinforcement, and safety improvements, and also recommends, for the 2026-2028 period, advances in regulation, priority area planning, port planning, institutional coordination, and environmental licensing.
EPE: PDE 2036 projects 3.4% annual growth in electricity consumption
EPE and the MME released the Energy Demand Report of the Ten-Year Energy Expansion Plan 2036 (“PDE 2036”), which projects average annual growth of 1.8% in final energy consumption between 2026 and 2036, from 302 million to 362 million tons of oil equivalent (toe). For electricity, the projected growth is 3.4% per year, reaching 979 TWh in 2036, while grid-supplied consumption is expected to increase from 620 TWh to 878 TWh. Data centers, electromobility, and hydrogen production through electrolysis are expected to jointly account for approximately 47 TWh in 2036, highlighting the growing relevance of new loads for power system expansion planning.
EPE and MME: PDE 2036 projects BRL 3.3 trillion in investments and a greater share of flexibility resources
EPE and the MME released the Summary Report of the PDE 2036, which estimates BRL 3.3 trillion in investments between 2027 and 2036. The reference scenario projects electricity consumption of 979 TWh and generation of 1,133 TWh in 2036, with renewables accounting for nearly 90% of the electricity matrix. Given the growing share of variable renewable sources, the plan foresees 7.2 GW of battery energy storage, 4 GW of demand response and, for the first time, 2 GW of pumped-storage hydropower plants, in addition to the expansion of 31,900 km of transmission lines and 99,600 MVA of transformation capacity.
EPE: Brazil could have 13 GW of flexibility in the electricity sector through batteries, pumped-storage hydropower, and demand response
Brazil could have more than 13 GW of operational flexibility in the electricity sector by 2036 through the increased participation of batteries and pumped-storage hydropower plants, as well as the use of demand response mechanisms, according to the public consultation on the Ten-Year Energy Expansion Plan 2036 (“PDE 2036”), published on October 8, 2026. Of this total, batteries could contribute 7.2 GW, an increase from the 6.6 GW projected in the previous year’s plan.
EPE: Study identifies public lighting as a driver of energy efficiency and transformation
EPE, in partnership with the Ministry of Cities, published a study on the modernization of public lighting, which consumed approximately 13,300 GWh in 2024, equivalent to about 2.4% of national electricity consumption. The document addresses the replacement of existing equipment with LED technology, remote management systems, and the integration of lighting infrastructure with other urban services, in addition to examining investment mechanisms such as COSIP, PPPs, concessions, and financing programs. The recommendations include establishing a consolidated national public lighting database, developing a replicable methodology for estimating energy-efficiency potential, reducing inequalities in access to modernization, and enhancing integration among energy planning, digital transformation, and urban management.
MME and EPE: PNE-2055 projects structural expansion of energy supply and demand
The MME approved, through MME Ordinance No. 938/2026, the National Energy Plan 2055 (“PNE 2055”), prepared in collaboration with EPE. The plan evaluates three long-term scenarios and indicates that the domestic energy supply could double by 2055, with renewable sources accounting for more than 80% of the energy matrix, while electricity demand could increase more than fourfold. Among its findings, the study points to electricity generation based on clean energy sources reaching up to 99%, the possibility of tripling transmission infrastructure, and energy efficiency gains capable of avoiding more than 25% of final energy consumption. The final version incorporated contributions received through MME Public Consultation No. 215/2026, which received 344 submissions from 35 institutions.
ANEEL: ASSIGNMENT OF PROCEEDINGS
In October, new proceedings were assigned to ANEEL’s directors. Among the proceedings, we highlight the following, due to their scope and subject matter:
| PROCEEDING | SUBJECT MATTER | RANDOMLY ASSIGNED RAPPORTEUR |
| 48500.028921/2026-70 | Impacts of the Tax Reform, as defined by Constitutional Amendment No. 132/2023, and implemented by Complementary Law No. 214/2025, on the remuneration bases of public electricity service concessionaires. | Gentil Nogueira de Sá Júnior
|
| 48500.028922/2026-14 | Adjustment of regulated contracts for generation and sale of electricity, as well as sector-specific charges, as a result of the Tax Reform and defined by Constitutional Amendment No. 132/2023, implemented by Complementary Law No. 214/2025. | Gentil Nogueira de Sá Júnior
|
| 48500.001347/2017-11 | Extension of the Sandbox for the Demand Response Availability Product. | Willamy Moreira Frota |
| 48500.000846/2026-82 | Public Consultation No. 36/2026, established with a view to gathering input and additional information for regulatory improvements related to Decree No. 12,772/2025. | Agnes Maria de Aragão da Costa |
| 48500.010967/2026-32 | Handling of excess generation from Distributed Micro- and Mini-Generation (“MMGD”), determined in the accounting of the load of the distribution companies. | Willamy Moreira Frota |
| 48500.030973/2026-14 | Extension of the Sandbox for the Demand Response Availability Product. | Willamy Moreira Frota |
| 48500.005444/2023-21 | Regulatory enhancements for the application of Article 28 of Law No. 14,300/2022, which defines microgeneration and distributed mini-generation as forms of electricity production intended for own consumption. | Willamy Moreira Frota |
MONITORING
NATIONAL CONGRESS – HIGHLIGHTS
| BILL | CONTENT | HOUSE | DATE |
| PL 5579/2026 | Establishes mechanisms for the periodic evaluation and gradual reduction of non-social tariff subsidies funded by the Energy Development Account (“CDE”), aimed at promoting affordable tariffs, preserving the Social Tariff for Electricity, and ensuring transparency in the breakdown of costs borne by consumers.
|
House of Representatives | October 15, 2026 |
FEDERAL COURT OF ACCOUNTS (TCU)
| PROCEEDING | SUBJECT MATTER | THEME | DECISION | |
| 021.800/2026-0 | Accountability Report for CPR São Francisco and Parnaíba and CPR Furnas
|
AudElétrica | Analysis of the financial reporting of the Promotion and Reference Companies (CPR) São Francisco and Parnaíba, as well as CPR Furnas, for the 2025 fiscal year. The conduct of this matter is under the responsibility of the Audit Unit Specialized in Electricity and Nuclear Energy (AudElétrica), currently in the fact-finding phase.
|
|
| 016.192/2026-5 | Request for a consensual resolution of a dispute involving an impasse regarding the viability of the Rio Grande Thermoelectric Power Plant in the municipality of Rio Grande/RS.
|
SecexConsenso | The TCU unanimously endorsed the decision not to admit the request for a consensual resolution submitted by Federal Congressman Alexandre Lindenmeyer regarding the feasibility of the Rio Grande Thermal Power Plant (“UTE Rio Grande”), in Rio Grande, Rio Grande do Sul.
|
NATIONAL SECTORAL AGENDA – OCTOBER
| Days | Event | Segment | Information |
| 27 to 29 | Brazil Windpower: A Key Trade Show for the Wind Energy Sector in Latin America | Wind
|
Link |
| 26 to 30 | 11th Brazilian Solar Energy Congress | Solar | Link |
| 27 and 28 | Underground Networks | Distribution and Transmission | Link |
| 29 and 30 | SINGTD – Energy and Industry 2026 | Sectoral | Link |
AUCTIONS
| October/2026 – Transmission Auction 4/2026
More information here |
| November/2026 – Existing Energy Auctions “A-1,” “A-2,” and “A-3” of 2026
More information here |
| December/2026 – LRCAP 2026 – LRCAP National Storage
More information here |
| December/2026 – LRCAP 2026 – Storage
More information here |
| April/2027 – Transmission Auction 001/2027
More information here |
| October/2027 – Transmission Auction 002/2027
To be carried out by ANEEL. |
HIGHLIGHTS
MME proposes a 1% biomethane mandate in 2027 and a gradual increase to 5% by 2030
Through the publication of MME Ordinance No. 942/2026, the MME proposed increasing the decarbonization target for the natural gas market from 0.5% to 1% in 2027. The target is to be met by obligated parties through the participation of biomethane in gas consumption. The percentage corresponds to 995.2 thousand m³/day of biomethane and 3.632 million Biomethane Certificates of Guarantee of Origin (“CGOBs”).
In addition, the ordinance proposed targets for subsequent years: 3% in 2028; 4% in 2029; and 5% in 2030. These targets are indicative in nature and may be confirmed or revised annually by the National Energy Policy Council (“CNPE”) following a regulatory impact assessment.
It is worth noting that the proposal was submitted for public consultation on October 5, 2026, through MME Ordinance No. 942/2026, with a 30-day period for the submission of contributions.
The multi-year schedule responds to a long-standing request from biomethane producers. However, the proposed target for 2027 falls below industry expectations. ABiogás advocates for a 1.5% target as early as 2027 and a target ranging from 5% to 7% over a five-year period. According to the association, a defined trajectory provides predictability for investors, given that the development of a biomethane plant may take three to four years.
Learn more: MME proposes a 1% biomethane mandate in 2027 and a gradual increase to 5% in 2030
MME opens public consultation on the natural gas market emissions reduction target for 2027
ANP opens public consultation on Sustainable Aviation Fuel (SAF) regulations
On October 29, 2026, the ANP Board of Directors approved the holding of a public consultation and hearing on the regulations for the National Sustainable Aviation Fuel Program (“ProBioQAV”).
At this stage, all segments of the SAF supply chain, producers, importers, distributors, and obligated parties, as well as certification bodies, research institutions, and other interested parties may submit comments. These contributions may lead to adjustments to the proposal before the final text is adopted. The draft proposal, as well as supporting documents, will be made available on the public consultations and hearings page of the ANP website, and the public hearing is scheduled for November 18.
It is worth noting that ProBioQAV was established by Law No. 14,993/2024 (Future Fuel Law) and regulated by Decree No. 13,094/2026. Starting January 1, 2027, the country’s major airlines must reduce their greenhouse gas emissions by 1% using SAF. To ensure compliance, the ANP and the National Civil Aviation Agency (“ANAC”) have until December 18, 2026, to issue the program’s supplementary regulations.
In September, ANAC opened its rules on monitoring, reporting, and verification, as well as penalties for failure to meet the target, or public comment. The ANP, in turn, must define the sustainability criteria for fuel certification, the methodology for calculating carbon intensity, and the rules for issuing and trading Sustainable Aviation Fuel Sustainability Certificates (“CS-SAF”). It is also up to the ANP to establish the requirements for the accreditation of inspection firms. Domestic producers may choose between the new Brazilian certification and the CORSIA standard from the International Civil Aviation Organization. For imported SAF, only CORSIA will be accepted.
Learn more at: ANP to Hold Public Consultation on Regulations for the National Sustainable Aviation Fuel Program (ProBioQAV) and ANP Approves Consultation on Rules to Introduce SAF in Brazil
NEWS
Government approves BRL 50 billion for the green industry, including biogas and e-mobility
On October 7, 2026, the Ministries of Finance and Environment approved the results of the fifth Eco Invest Brazil auction, with BRL 49.95 billion in planned investments across six production chains linked to innovation and ecological transformation. Public capital allocated to support the transactions amounts to BRL 13.2 billion, including BRL 9 billion for investment funds and BRL 4.2 billion for corporate credit operations.
In the energy sector, HSBC was selected to structure funds and credit operations focused on advanced green fuels, biogas, and biomethane, with funding totaling approximately BRL 5.2 billion. Santander will be responsible for initiatives related to the critical minerals processing chain, batteries, and electric mobility, a segment that will receive BRL 6.5 billion. Among the activities prioritized by the financial institutions, battery and energy storage projects are expected to receive BRL 4.55 billion in investments.
The largest share of resources, totaling BRL 11 billion, was allocated to the circularity of mineral and industrial waste under Bradesco’s responsibility. The bank will also oversee green fertilizer, bioinput, alternative protein, biomaterials, and green chemistry value chains. Itaú was selected to lead initiatives involving automation and artificial intelligence applied to production processes. Eco Invest is part of Brazil’s Ecological Transformation Plan and, according to the ministries, the program’s five auctions have already mobilized more than BRL 190 billion.
Learn more: Government approves BRL 50 billion for the green industry, including biogas and electric mobility
ANP accredits B3 as a registry entity for biomethane certificates of origin
On October 9, 2026, the ANP approved the accreditation of B3 S.A. (“B3”) as a registry entity for CGOBs. The decision, announced on October 13, expands the infrastructure required for the issuance, registration, trading, cancellation, and retirement of such certificates. With this approval, the market now has three accredited registry entities: B3; ACX Brasil; and Instituto Totum, in addition to seven origin certifying agents and three bookkeeping entities.
Created by Law No. 14,993/2024, under the National Program for the Decarbonization of Natural Gas Producers and Importers and the Promotion of Biomethane, the CGOB certifies the environmental attributes of biomethane and ensures its traceability from production through commercialization. Biomethane producers and importers wishing to participate in the program must engage an Origin Certifying Agent accredited by the ANP to perform the certification required for the issuance of CGOBs.
Learn more: ANP accredits B3 S.A. as a registry entity for Biomethane Certificates of Guarantee of Origin
ANP maintains prohibition on biodiesel sales between distributors for two years
On October 9, 2026, the ANP’s Board of Directors approved the extension, for two years, of the prohibition on biodiesel sales between distributors. During this period, the Distribution and Logistics Superintendence (“SDL”) is expected to submit a definitive proposal addressing the issue.
The measure was adopted to combat so-called “bionotas“. These are biodiesel commercialization invoices entered into the Product Movement Information System (“SIMP”) that do not correspond to the actual circulation of the product. In practice, the restriction strengthens the traceability of biodiesel volumes used in the blending of diesel B.
Learn more:
ANP maintains prohibition on biodiesel sales between distributors for two years
Restriction on biodiesel sales between distributors helps combat fraud, producers say
ANP revises technical data acquisition rules and expands scope to hydrogen, CCS, and gas storage
On October 2, 2026, the ANP’s Board of Directors approved amendments to ANP Resolution No. 889/2022. The regulation governs the acquisition, processing, and reprocessing of technical data in activities regulated by the agency, as well as the rules governing access to such data. The revision aims to adapt the regulatory framework to the new powers assigned to the ANP under three laws: (i) Law No. 14,948/2024, the legal framework for low-carbon hydrogen; (ii) Law No. 14,993/2024 (the Future Fuel Law), which addresses carbon capture and geological storage (“CCS”); and (iii) Law No. 14,134/2021, which includes underground natural gas storage.
The resolution will now encompass the acquisition of geoscientific data for three purposes: prospecting areas suitable for underground gas storage, exploration and production of natural hydrogen, and identification of geological formations suitable for CCS activities. The revision also establishes objective criteria for authorizing the drilling of wells for data acquisition purposes in uncontracted federal areas. In addition, it expressly recognizes consortia formed by Data Acquisition Companies (“EADs”) and creates the role of Lead EAD, which will represent the consortium before the agency and assume responsibility for the rights and obligations of the data holder.
From an operational standpoint, EADs will be required to report details of each sale of non-exclusive data to the ANP, including the purchaser, transaction value, date, and commercialized volume. Such information will remain confidential. Whenever the acquisition of exclusive data extends beyond the boundaries of the originating area, the holder of the neighboring granted area must be notified in advance. The regulation further clarifies that outsourcing activities to third parties does not release the data holder from its regulatory responsibilities before the ANP. Existing technical data confidentiality regimes remain unchanged.
Learn more: ANP revises technical data acquisition rules and expands scope to hydrogen, CCS, and gas storage
Petrobras launches call for proposals to acquire biomethane and CGOBs
On October 30, 2026, Petróleo Brasileiro S.A. (“Petrobras”) issued its second call for proposals for the purchase of biomethane and CGOBs, with supply beginning in 2027. Biomethane contracts may have a term of up to ten years, with a minimum volume of 20,000 m³/day. CGOB contracts will have a term of up to two years, extendable for an equal period.
The purpose of the call for proposals is to prepare the company to meet the decarbonization obligations established by Law No. 14,993/2024 (Future Fuel Law) for natural gas producers and importers. According to Petrobras, the initial national target is 504,000 m³/day of biomethane, taking into account all obligated parties, while individual targets will be set by the ANP. At Petrobras, biomethane can be used primarily to replace part of the natural gas consumed at refineries and other industrial facilities.
The proposals will not be binding, and Petrobras will evaluate them based on competitiveness, project maturity, and the expected start date for supply. Interested parties must register on the Petronect Portal and apply for the opportunity by December 11, 2026. Proposals will be accepted between December 14 and 22.
Learn more: Request for Proposals for the Purchase of Biomethane and Petrobras Launches Request for Proposals for Biomethane with Long-Term Supply
| TYPE | DESCRIPTION | CONTRIBUTION DEADLINE | CODE/NOTES | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Petróleo Brasileiro S.A. | Chartering of one Maintenance and Safety Unit “UMS” | November 10, 2026
12:00 p.m. |
7004643337 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Petróleo Brasileiro S.A. | EPC services for the revamp of Delayed Coking Unit U-52 at REGAP. | November 16, 2026
5:00 p.m. |
7004591313 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Petróleo Brasileiro S.A. | Chartering of at least one PSV 3000 vessel (Lots A and B). | November 17, 2026
12:00 p.m. |
7004654576 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Petróleo Brasileiro S.A. | Chartering of at least one PSV 4500 vessel (Lots A, B, C, D and E). | November 17, 2026
12:00 p.m. |
7004675762 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Petróleo Brasileiro S.A. | Subsea EPCI project encompassing engineering design services (NBS: 1.1403.22.90), subsea system installation services (NBS: 1.0102.41.10), supply of goods for implementation of the SEAP Route Pipeline, and supply of goods for implementation of EPCI SEAP II by the contractor under a lump-sum arrangement. | January 6, 2027
12:00 p.m. |
7004597133 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Petróleo Brasileiro S.A. | Accreditation of interested parties for the provision of subsea tie-back services. | January 19, 2027
12:00 p.m. |
7004555053 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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* Please note that the deadlines in the table above are constantly changing, so those listed above correspond to those published at the time of this publication.
