Brazil's power grid moves to add thermal plants, expand transmission and address chronic outages

The Electric Sector Monitoring Committee (CMSE) warned that Brazil may need to increase output from thermal power plants if demand rises and adverse climate conditions, such as a strong El Niño forecast for the second half of 2026, materialise. The plan includes optimized operation of São Francisco river hydroelectric plants and strategic use of the Itaipu reservoir, while the National System Operator (ONS) keeps the yellow tariff flag in place, resulting in an added cost of R$ 1.885 per 100 kWh for consumers.

Energy transmission auctions between 2023 and 2026 have secured roughly R$ 67.8 billion for more than 19,000 km of new lines and 24,000 MVA of substation capacity, extending the National Interconnected System (SIN) and facilitating greater integration of renewable generation. Future auctions will continue to fund projects across dozens of states.

The National Electric Energy Agency (Aneel) has ordered distribution companies to draft, within 270 days, a methodology that proves they have made a "maximum effort" to recover credit losses from contractual breaches, aiming to avoid passing unrecovered costs onto consumers.

In Rio Branco do Sul, Paraná, repeated power outages have disrupted households, a senior care home and live broadcasts of national team matches, prompting a formal complaint to the State Public Prosecutor's Office against the utility Copel. Residents report damage to appliances and loss of essential services, while local officials call for investigations and infrastructure improvements.