Energy and Natural Resources Newsletter | January 2026

ANP approves draft tender notice with 17 new blocks

On January 26, 2026, the board of Brazil’s National Agency of Petroleum, Natural Gas, and Biofuels (“ANP”) approved the new draft tender notice for the Production Sharing Open Acreage (“OPP”), adding 17 exploration blocks to the 8 already included in the previous version.

The ANP decided to exclude the Mogno block from the tender, given that part of it extends beyond Brazilian territory. In the words of reporting officer Fernando Moura, “this would lead to a longer process, undermining the opening of a new cycle each year and creating negative economic and social impact.”

The draft will be sent to the Ministry of Mines and Energy (“MME”) for review and will be subject to a public hearing at ANP. The notice will be published once both authorities grant final approval, allowing companies registered in the OPP to express interest in the blocks with a bid guarantee, initiating a new cycle of this round later this year.

Brazil’s National Energy Policy Council (CNPE) approved the inclusion of the 17 blocks through the following resolutions:

• CNPE Resolution No. 26/2021 – Cruzeiro do Sul
• CNPE Resolution No. 07/2024 – Rubi and Granada
• CNPE Resolution No. 16/2024 – Cerussita, Aragonita, Rodocrosita, Malaquita, Opala, Quartzo and Calcedônia
• CNPE Resolution No. 03/2025 – Siderita, Hematita, Limonita and Magnetita
• CNPE Resolution No. 19/2025 – Calcita, Dolomita and Azurita

Find out more: ANP approves draft tender notice with 17 new blocks

ANP approves new timeline to develop a methane resolution

On January 14, 2026, the ANP board approved an updated timeline for Regulatory Action 1.17 of the 2025–2026 Regulatory Agenda to develop regulatory instruments that reduce methane emissions in regulated activities, particularly in exploration and production (“E&P”) and in the refining, processing and transportation links of the oil, natural gas, and derivatives chain.

“Methane has a global warming potential 80 times higher than CO₂ and accounts for nearly 30% of current global warming, according to the IPCC (Intergovernmental Panel on Climate Change). According to the ANP, “it is also a short‑lived climate pollutant in the atmosphere (about 12 years, versus centuries for CO₂), meaning that reducing its concentration can deliver faster results in tackling global warming”.

Updated milestones for Regulatory Action 1.17:

• Preliminary studies: changed completion target from July 2025 to December 2025.
• RIA (Regulatory Impact Analysis) or technical regulatory memo: changed completion target from December 2025 to May 2026.
• Draft normative act: changed completion target from March 2026 to July 2026.
• Public consultation: changed completion target from June 2026 to September 2026.

Find out more: ANP approves new timeline to develop a methane resolution

Cutback in incentives impacts O&G competition in the Rio de Janeiro state

On December 23, 2025, Law No. 11,071/2025 was published, increasing the rate of the Temporary Budget Fund (FOT) for companies benefiting from ICMS tax incentives in the state of Rio de Janeiro.

The measure approved by Governor Cláudio Castro particularly affects sectors such as oil and natural gas. Law No. 11,071/2025 forms part of a broader fiscal package designed by the State Executive Branch to boost revenues and reduce the fiscal deficit – estimated at BRL 18.93 billion for 2026 – during the tax reform transition period.

Under the new law, the current FOT rate will rise to 20% after 90 days, with gradual increases in subsequent years. The phased timeline provides for the following rates:

25% in 2027

27% in 2028

30% in 2029

40% in 2030

50% in 2031

60% in 2032 (final year of the reform transition period).

Find out more: Cutback in incentives impacts O&G competition in Rio de Janeiro state

ANP approves marine fuels regulatory timeline

On January 8, 2026, the ANP board approved a new timeline for Regulatory Action 4.2 of the 2025-2026 Regulatory Agenda, under the Superintendence of Biofuels and Product Quality (SBQ).

The updated schedule focuses on revising specifications and assessing quality control for marine fuels, including marine diesel and bunker fuel.

The regulatory action provides for the revision of ANP Resolution No. 903/2022, which establishes mandatory blending of biodiesel into marine fuels, provided that the technical‑operational conditions ensure the safe use of the blend. According to the ANP, these conditions have been met and there are no restrictions on the use of biodiesel and other biofuels in these fuels.

The initiative seeks to enable the inclusion of biofuels and synthetic fuels in the water transport segment, with approval and publication scheduled for August 2026.

Find out more: ANP approves marine fuels regulatory timeline

NEWS

ANP adjusts timelines for two regulatory actions on its agenda

 On December 30 and 31, 2025, the ANP board approved changes to the schedules for two regulatory actions included in the 2025-2026 Regulatory Agenda.

The changes involve the revision of:

• ANP Resolution No. 785/2019, which provides for the assignment of oil and natural gas E&P contracts.
• The action to assess measures that will streamline the exploration phase and the Minimum Exploratory Program (“PEM”).

These adjustments address regulatory planning requirements in view of technical complexity and emerging sector challenges.

For the revision of Resolution No. 785/2019, the ANP extended the timeline to examine in greater depth the proposal to dissolve the Committee for the Evaluation of Partnership Proposals (CAPP) and replace it with a normative instruction. The measure seeks to simplify administrative procedures, optimize resource management, and expedite the review of assignments, guarantees, changes in corporate control, and other acts related to E&P contracts, aligning regulation with administrative efficiency.

The ANP also broadened the scope of the action related to the PEM. In addition to reformulating the program, the initiative will consider policies to optimize the exploration‑phase timeline, drive technological advances, address decarbonization challenges and improve exploration performance. ANP pushed back the deadlines significantly, with completion expected only in 2027, including the RIA and public consultation and hearing phases. According to the ANP, the new schedule ensures a more comprehensive assessment aligned with the energy transition landscape and the long‑term needs of Brazil’s E&P industry.

Find out more: ANP adjusts timelines for two regulatory actions on its agenda

ANP and Ministry of Finance sign agreement to foster free competition in the O&G market

On January 22, 2026, the ANP signed a technical cooperation agreement with the Secretariat for Economic Reforms of the Ministry of Finance (SER/MF) to foster free competition in the regulated markets for oil, natural gas, and biofuels.

The agreement excerpt was published in the Federal Official Gazette of Brazil, setting a four-year term for coordinated action on issues of common interest, with no transfer of financial resources.

The agreement establishes institutional cooperation mechanisms, such as information sharing, the exchange of technical expertise, and the development of joint initiatives, while respecting each authority’s legal competence. The initiative is based on Article 25 of the Regulatory Agencies Law (Law No. 13,848/2019), which encourages cooperative action among regulators and competition authorities to improve regulatory efficiency and alignment with economic policy.

According to the ANP, the agreement aligns with its 2025–2028 strategic roadmap, particularly regarding goals to improve regulatory quality and foster a secure, transparent, and efficient regulatory environment.

Improved institutional coordination is expected to spur competitiveness, attract infrastructure investment and strengthen the O&G business environment, amid growing scrutiny of the competitive effects of sector‑specific regulation.

Find out more: ANP and Ministry of Finance sign agreement to foster free competition in the O&G market

ANP removes offshore block in the Santos Basin from open acreage notice

On January 26, 2026, the ANP board approved the update of the production sharing open acreage notice to remove the S-M-1963 offshore exploration block from the Santos Basin.

The change follows CNPE Resolution No. 10/2025, which sets guidelines for petroleum exploitation beyond 200 nautical miles on the Extension of the Brazilian Continental Shelf.

CNPE Resolution No. 10/2025 requires specific clauses in tender notices and contracts for blocks located beyond 200 nautical miles. In response to Brasil Energia, the ANP stated that “as the current notice does not include these clauses yet, the ANP temporarily excluded the block, enabling the immediate continuation of the open acreage cycles with legal certainty”.

Currently, the Santos Basin has 7 blocks partially located beyond 200 nautical miles, and 21 blocks entirely located beyond that limit, while the Pelotas Basin has 6 blocks partially located beyond that limit.

Find out more: ANP removes offshore block in the Santos Basin from open acreage notice

Brazilian Government establishes National Policy for Access to the Transmission System

On December 05, 2026, the Brazilian Government published Decree No. 12,772/2025, which creates the National Policy for Access to the Transmission System (“PNAST”). The measure changes the rules for connecting generators and large consumers to the Basic Network, replacing the chronological model with a competitive allocation system. The main change is the adoption of “Access Seasons” – that is, periodic windows during which connection requests will be reviewed simultaneously, ensuring greater transparency and efficiency. This method will be used in regions where demand exceeds available capacity. The first season is expected to occur within 10 months, and from 2027, there will be at least two annual seasons.

The decree also requires financial guarantees for new orders and reinforces the integration between network expansion planning and the results of the seasons. According to the Ministry of Mines and Energy (“MME”), the initiative seeks to rationalize transmission use, reduce risks, and ensure affordable rates.

Transition rules:

• Access requests filed before the publication of the decree will be assessed and their corresponding access opinions will be issued within ten months of the date of publication of Decree No. 12,772/2025, and before the date of the first Access Season.
• Access applications filed after the publication of Decree No. 12,772/2025 and before the opening of the first Access Season will only be accepted if (a) there is remaining capacity available at the intended connection point; and if (b) they are submitted before the opening of the first Access Season and in advance of the regulatory analysis period required by Brazil’s National Electric System Operator (“ONS”).

As published on the agency’s website, on January 05, 2026, the ONS informed that “requests for permanent access to the Basic Network from generating agents and consumers will be received until May 29, 2026”. From this date onwards, requests must be submitted exclusively during the Access Seasons, in compliance with the procedures and deadlines to be announced later. The deadline complies with the provisions of item II, Article 10, of Decree No. 12,772/2025.

Subsequently, in compliance with Article 7 of the same decree that instituted PNAST, the registration period for the first Access Season will be opened to interested agents from June 01, 2026, to June 15, 2026. Registration will be carried out using a specific technological platform, whose procedures and guidelines will be published in advance by the ONS.

As reported by the agency, on February 02, 2026, 43 requests for consumer access to the Basic Network – which were already being processed by the MME – were submitted to the ONS for analysis. In the communication, the agency stressed that access requests can be submitted until May 29, 2026. After that date, requests will only be accepted during the Access Seasons.

Access Decree No. 12,772/2025.

Access the ONS publication of January 05, 2026.

Access the ONS publication of February 02, 2026.

Transmission auctions expected to generate more than BRL 25 bi in 2026

The Minister of Mines and Energy, Alexandre Silveira, announced that Brazil’s Federal Government will hold two energy transmission auctions in 2026, totaling more than BRL 25 billion in investments. The first auction, scheduled for March 27, 2026, is expected to raise BRL 5.7 billion across 888 km of transmission lines distributed in 12 states. The second, scheduled for the second half of 2026, is expected to exceed BRL 20 billion and cover more than 3,500 km of new transmission lines, with further details to be defined by the Brazilian Energy Research Company (“EPE”).

Access the article in full.

ANEEL opens public consultation on time-of-use tariffs for high-consumption

On December 26, 2025, Brazil’s National Electricity Regulatory Agency (“ANEEL”)  initiated a public consultation to address the low participation of consumers in the time‑of‑use tariff and to propose regulatory measures aimed at informing a future decision by ANEEL regarding the implementation of the automatic time‑of‑use tariff for low‑voltage consumers with high demand. The proposal integrates the tariff modernization process, seeking to encourage the efficient use of electricity by aligning prices with periods of higher and lower system costs.

ANEEL claims that the measure will allow these consumers to adjust their consumption profiles and benefit from lower-priced periods, thereby reducing demand. The initiative also strengthens integration with demand response policies, promoting greater flexibility and competitiveness in the energy sector.

The public consultation received contributions from market players, associations, and interested consumers until January 31, 2026. The new tariff structure is expected to be regulated in 2026, with phased implementation for eligible groups.

Access the public consultation in full.  

Brazilian Judiciary ends GSF dispute and releases BRL 323 million to power generation companies

In December 2025, the Brazilian Judiciary ratified the last injunction in force related to the judicialization of the hydrological risk (“GSF”) that still prevented full financial settlement in the short-term market (“MCP”). With this decision, approximately BRL 323 million were released for the financial settlement flow for November 2025, which was expected to be completed in January 2026. The resolution of GSF disputes is regarded as a milestone for regulatory stability and for restoring players’ confidence in the market.

Access the article in full.

ANEEL announces measures to expand oversight across states

In December 2025, ANEEL announced a package of measures to strengthen oversight of distribution companies and other players integrating Brazil’s power sector. The initiative seeks to increase ANEEL’s presence in the states to improve quality-of-service control and ensure compliance with regulatory standards.

Measures include the creation of new regional centers, intensified on-site inspections, and the use of remote monitoring technology. According to ANEEL, the goal is to streamline operations and bring the agency closer to consumers, while expanding its ability to respond to irregularities.

ANEEL also intends to strengthen partnerships with state and federal entities, promoting integration between oversight authorities. These changes are expected to increase transparency and efficiency in oversight, contributing to the continuous improvement of the power sector.

Access the article in full.

ONS and EPE publish technical note on remaining SIN capacity for 2026 LRCAP

On January 16, 2026, the ONS and EPE issued a technical note containing the Remaining Capacity Quantities of Brazil’s National Interconnected System (“SIN”) for:

• Generation Flow in Basic Network facilities;
• Other Transmission Facilities (“DITs”); and
• Facilities of Exclusive Interest to Generation Plants for Shared Connection (“ICG”), for the purposes of the Capacity Reserve Auctions in the form of Power (“2026 LRCAP”).

Access the article in full.

MME defines representatives of 29 entities to join the Energy Transition Forum

The MME has published a resolution appointing the representatives, members, and alternates who will integrate the Plenary of the Brazilian Energy Transition Forum (“FONTE”). The group is formed by representatives from the three spheres of the Brazilian  Government, civil society, and the productive sector. The entity was created by the National Energy Policy Council (“CNPE”) in 2024 as a permanent instrument for implementing the National Energy Transition Plan, serving as a consultative forum for discussions on energy transition matters.

Access Normative Resolution No. 8/2026 in full.

Proposal allows early submission for capacity contracts, applications available from April 2026

The MME has released, for public consultation, a draft resolution of the Electric Sector Monitoring Committee (“CMSE”) containing a proposal for general guidelines to allow the advancement of contracts for projects awarded in the Capacity Reserve Auctions in the form of Energy (“LRCE”) and in the LRCAP – the first edition of which is scheduled for March 18, 2026. The proposal contains provisions on the authorization to advance contracts, applicable rules and methodologies, as well as the operation of associated contractual changes. The topic is open to receive contributions, via MME Public Consultation No. 212, until February 11, 2026.

Access Ordinance No. 892/2026.

ANEEL defines TFSEE fees for self-producers and independent energy producers in 2026

ANEEL has published the updated amounts of the Electric Energy Services Inspection Fee (“TFSEE”) that will apply in 2026 to agents classified as self-producers and independent energy producers (“PIE”). The amounts are determined by the plant’s size, the source used, and the agent’s operating regime.

Access Order No. 11/2026.

ANEEL approves new CCEE bylaws

ANEEL’s Board of Directors approved the new bylaws of Brazil’s Chamber of Electric Energy Commercialization (“CCEE”). The text had already been approved by the 75th Extraordinary General Meeting.

However, the bylaws had to be updated to accommodate the changes to the CCEE’s governance structure established by Decree No. 11,836/2023, the Commercialization Convention, and the need for adjustments indicated by the CCEE at its 42nd Ordinary Public Meeting (“RPO”), held in 2024. Among the changes to the bylaws are modifications to governance, modernization of transparency and monitoring of activities, and necessary adaptations to the gradual opening of the free electricity market.

Access the article in full.

ANEEL suspends payment of compensation owed by generators for 90 days

ANEEL has decided to suspend, for 90 days, payments of reimbursements owed by wind and solar generators under Energy Purchase and Sale Contracts in the Regulated Contracting Environment (“CCEAR”) and Reserve Energy Contracts (“CER”) to consumers.

The suspension was carried out due to the inclusion of Art. 1-B in Law No. 10,848/2004 (as a result of the enactment of Law No. 15,269/2025), which addresses compensation to wind and solar generators affected by generation cuts (“curtailments”) applied to wind and solar power plants. As provided for in the regulation, compensation (i) will only be due to generators that  execute a term of commitment with the Granting Authority, waiving the right to compensation for curtailment events and ongoing legal proceedings; and (ii) must be funded through the reimbursements due and not yet settled by wind and solar generation agents in the CCEAR and CER.

In light of this, ANEEL’s Board of Directors has deemed appropriate to suspend the reimbursements owed by wind and solar generators under CCEARs and CERs until the Granting Authority has fully regulated the mechanism, as provided for in Art. 1-B of Law No. 10,848/2004. Therefore, the following are expected to be considered: (i) The new mechanics of events involving curtailments subject to reimbursement; and (ii) The energy and financial balance of CCEARs and CERs for costing. In parallel, the MME initiated Public Consultation No. 210/2025 – whose deadline for contributions was January 16, 2026 – to discuss the draft of the commitment term referred to in Article 1-B of Law No. 10,848/2004.

Access the vote of ANEEL’s Collegiate Board.

Objects of Transmission Auction No. 4/2025-ANEEL and Existing Energy Auctions A-1, A-2, and A-3 of 2025 approved and awarded

During the 1st Ordinary Public Meeting of 2026, ANEEL’s Collegiate Board approved the results and awarded the assets of Transmission Auctions No. 4/2025‑ANEEL (held on October 31, 2025) and of the Existing Energy Auctions A‑1, A‑2, and A‑3 of 2025 (held on November 14, 2025).

Access the vote of ANEEL’s Board of Directors on Transmission Auction No. 4/2025-ANEEL.

Access the vote of ANEEL’s Board of Directors regarding the A-1, A-2, and A-3 Existing Energy Auctions of 2025

Public Consultation No. 35/2025 introduces updates for the 2026 LRCAP, including ERCAP payment rules and final pre-notice adjustments

ANEEL’s technical department has published Joint Technical Note No. 2/2026-SEL-SGM, introducing an assessment of the contributions received under Public Consultation No. 35/2025, including relevant adjustments to the public notice and to the Capacity Reserve Power Contract (“CRCAP”) for the 2026 LRCAP.

Among the key points, we highlight the following:

• The proposal maintains the requirement that main equipment be new for projects to qualify as “new” developments – an issue that prompted reservations from ANEEL’s Technical Oversight Department for Electric Power Services (“SFT”) due to inspection challenges and the absence of a specific legal provision.
• The proposal defines that the allocation of the physical guarantee gains of expanded hydro power plants must comply with the corresponding concession agreements, given the repeal of the legal provision that previously governed the matter.
• The proposal includes clauses to ensure legal certainty regarding the non‑incidence of the Capacity Reserve Power Charge (“ERCAP”) on generators that are awarded contracts in the auction, as well as regarding potential adjustments to the Variable Unit Cost (“CVU”) resulting from tax changes.

The document also incorporated technical adjustments involving the Natural Gas Transportation System (“STGN”), the participation of market agents undergoing judicial reorganization, the rules on programmed outages, inflexibility, and operational independence among units, as well as the circumstances for contractual termination under CRCAP. The proceeding is currently under review by ANEEL’s Office of the General Counsel, which is expected to issue an opinion on seven specific topics before proceeding to the Board’s approval – scheduled for February 10, 2026.

Access the article in full.

Brazilian Government revises PROINFA extension rules and lowers reference prices for wind and small hydropower plants

On January 26, 2026, Brazil’s Federal Government published Decree No. 12,834, which updates the guidelines for extending the contracts of the plants participating in the Incentive Program for Alternative Sources of Electricity (“PROINFA”). The measure replaces the rules established in 2021 and adjusts points established initially in the law that authorized the privatization of Eletrobras, sanctioned in 2021, which already provided for the extension of these contracts.

Under the new framework, Empresa Brasileira de Participações em Energia Nuclear e Binacional S.A. (“ENBPar”) assumes responsibility for implementing the extensions, replacing Eletrobras. Within 30 days, the state-owned company will have to publish the model of the amendment  and the adherence schedule. The decree also establishes March 31, 2026, as deadline for executing the amendments, which will take financial effect the following month.

Among the updates is the possibility for generators to voluntarily reduce the amount contracted in relation to the current contract. However, no changes can be made after the amendment has been formalized. The extension can last up to 20 years from the end of the current contract, with flexibility for shorter terms, depending on the agent’s discretion.

The text also redefines reference prices, based on the amounts of the 2019 A-6 Auction, including for projects that have not yet been granted a license. These amounts will be updated for inflation from the time of the bid until the execution of the amendment.

In addition, the decree ensures that generators that sign up to the extension will continue to benefit from the GSF renegotiation mechanism for the same period as the extension, and further allows for an onerous extension of the concession after the new deadline.

Henrique Reis, partner in Demarest’s Electric Energy practice, contributed to the article, highlighting the key aspects of the regulations approved by Decree No. 12,834. He also emphasized that the changes align the regulations with the conditions introduced by the National Congress when it overturned the presidential veto on provisions of the legal framework for offshore wind farms. According to Henrique Reis, the new rules are “more favorable than the previous ones”, particularly for hydropower plants, with improvements in the price cap, the adjustment index, and the possibility of re-extending the grant.

Access Decree No. 12,834/2026.