![Brazil Brazil](https://cdn-www.bnamericas.com/img/flags/BRAZIL.jpg)
Why Brazil wants to suspend agreement with Âmbar Energia
Brazil’s federal attorney general's office (AGU) sent a note to the mines and energy ministry (MME) requesting the suspension of an agreement signed between the federal government and Âmbar Energia as it is allegedly damaging to the public interest.
Signed in May, the agreement outlines the replacement of thermal plants contracted in the emergency auction held in 2021 at the height of the water crisis, but not delivered, with a contract for the Cuiabá thermal power plant and the payment of a 1.1bn-real fine (US$200mn) by Âmbar.
AGU's move complied with a request made by federal audit court TCU based on the suspicion that public authorities had signed the agreement to benefit the company, undermining equality with other firms in the sector and damaging electricity consumers.
The agreement stipulated that it would only go into effect 60 days after it was signed (from July 22) and stated that, during this period, if the TCU made any notes, recommendations or reservations to the text, it would be suspended until the problem identified by the audit court is remedied.
Called the simplified competitive procedure (PCS), the 2021 auction was held by electric power watchdog Aneel amid supply problems due to a severe drought that led to the lowest availability of water for hydroelectric generation in nearly a century.
The tender offered higher revenues than the average seen in the supervisory body's bidding processes, but with the condition of a short deadline for the completion of the gas-powered projects.
The original deadline for these developments to begin commercial operations was May 1, 2022, but several projects were delayed, leading to fines of more than 1.7bn reais.
Subsequently, in October 2022, the MME launched a public consultation to discuss a proposal to cancel the power generation contracts signed in the tender.
Last year, minister Alexandre Silveira said the government would negotiate flexibility in the thermoelectric generation of the plants contracted in the auction if there was no agreement with the owners of the projects.
ÂMBAR ENERGIA
Âmbar is an energy company owned by J&F Investimentos, the holding company controlled by powerful and controversial businessmen Joesley and Wesley Batista, which also controls firms such as meatpacker JBS and pulp producer Eldorado Celulose.
The Batistas were investigated by the federal police as part of the Lava Jato probe for allegedly paying bribes to politicians. The graft scheme was revealed by the two men under a plea bargain agreement signed with the federal prosecutors' office PGR.
In May, the brothers met President Luiz Inácio Lula da Silva for the first time since signing the plea bargain deal, during talks with the local meat exporters (ABIEC), animal protein (ABPA) and meatpacking associations.
Âmbar has substantially expanded its business in the country. After acquiring Copel's Araucária thermoelectric plant and Engie's Lages cogeneration plant in December 2023 and this May, respectively, it bought 13 gas-fired assets from Eletrobras in June.
The company is considering registering the Araucária plant and other projects to take part in the backup capacity tender due to be held by the government in August.
Its power generation portfolio currently totals 4.6GW of installed capacity, including thermal, hydroelectric, solar and a biogas plant.
According to a report by newspaper Folha de São Paulo, Âmbar recently submitted a proposal to Aneel to take control of Amazonas Energia, the electricity distribution concessionaire in Amazonas state sold by Eletrobras to the Oliveira Energia consortium, part of the Atem group, in 2018.
Âmbar's energy trading arm, Âmbar Comercializadora de Energia, is one of the three companies authorized by the MME to import electricity from Venezuela, an operation that is still under negotiation.
Subscribe to the leading business intelligence platform in Latin America with different tools for Providers, Contractors, Operators, Government, Legal, Financial and Insurance industries.
News in: Electric Power (Brazil)
![The PPP, concession auctions Brazil plans for September](https://cdn-www.bnamericas.com/img/sectors/electricpower_2.jpg)
The PPP, concession auctions Brazil plans for September
The contracts, in the form of concessions and PPPs, will be offered in auctions on Brazil’s B3 stock exchange.
![Trina optimistic about storage, datacenters as growth avenues in Latin America](https://cdn-www.bnamericas.com/img/sectors/electricpower_1.jpg)
Trina optimistic about storage, datacenters as growth avenues in Latin America
Amid a slowdown in the solar module segment, Trina Solar sees power storage and PPA deals for datacenters boosting demand in Latin America.
Subscribe to Latin America’s most trusted business intelligence platform.
Other projects in: Electric Power (Brazil)
Get critical information about thousands of Electric Power projects in Latin America: what stages they're in, capex, related companies, contacts and more.
- Project: Arinos 8 photovoltaic park (Arinos Complex)
- Current stage:
- Updated:
2 days ago
- Project: Fênix L Wind Farm
- Current stage:
- Updated:
3 days ago
- Project: Fênix K Wind Farm
- Current stage:
- Updated:
3 days ago
- Project: Fênix J Wind Farm
- Current stage:
- Updated:
3 days ago
- Project: Fênix I Wind Farm
- Current stage:
- Updated:
3 days ago
- Project: Fênix H Wind Farm
- Current stage:
- Updated:
3 days ago
- Project: Fênix G Wind Farm
- Current stage:
- Updated:
3 days ago
- Project: Fênix E Wind Farm
- Current stage:
- Updated:
3 days ago
- Project: Fênix D Wind Farm
- Current stage:
- Updated:
3 days ago
- Project: Fênix C Wind Farm
- Current stage:
- Updated:
3 days ago
Other companies in: Electric Power (Brazil)
Get critical information about thousands of Electric Power companies in Latin America: their projects, contacts, shareholders, related news and more.
- Company: UTE GNA II Geração de Energia Ltda.  (UTE GNA II Geração de Energia)
-
UTE GNA II Geração de Energia Ltda. (UTE GNA II) is a Brazilian power generation company established in 2015 and based in Rio de Janeiro which operates as a subsidiary of Gás Na...
- Company: Atlas Energia Renovável do Brasil S.A.  (Atlas Energia Renovável do Brasil)
-
The description included in this profile was taken directly from an AI source and has not been edited or modified by BNamericas researchers. However, it may have been automatica...
- Company: Essentia Energia Renovável Spe Ltda.  (Essentia Energia)
-
The description included in this profile was taken directly from an official source and has not been modified or edited by the BNamericas’ researchers. However, it may have been...
- Company: Lightsource BP Renewable Energy Investments Limited  (Lightsource BP Brasil)
-
The description included in this profile was taken directly from an AI source and has not been edited or modified by BNamericas researchers. However, it may have been automatica...
- Company: Comerc Renew
-
The description contained in this profile was taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been automatical...
- Company: Companhia de Geração e Transmissão de Energia Elétrica do Sul do Brasil  (CGT Eletrosul)
-
Eletrosul Centrais Elétricas (Eletrosul) is a privately held mixed ownership Brazilian corporation primarily engaged in the generation and transmission of electricityin the sout...
- Company: Enel Green Power Brasil Participações Ltda.  (Enel Green Power Brasil)
-
Enel Brasil Participações Ltda. is the Brazilian subsidiary of Enel Green Power S.p.A. It is engaged in the generation, distribution and marketing of electric power. Currently,...
- Company: Atiaia Energia S.A.  (Atiaia Renováveis)
-
Atiaia Energia, a joint venture by the Cornélio Brennand Group (90%) and Koblitz Energia (10%), searches for prospective renewable energy projects in the areas of small hydroele...
- Company: Cobra Brasil Serviços, Comunicações e Energia, S.A.  (Grupo Cobra Brasil)
-
Cobra Brasil Serviços, Comunicações e Energia, S.A. (Cobra Brasil), a subsidiary of Grupo Cobra, is a power company engaged in generation and transmission of electricity. It is ...