1) ANEEL maintains yellow tariff flag for July 2026
ANEEL maintained the yellow tariff flag for July 2026. As a result, the additional charge of BRL 1.885 per 100 kWh consumed remains in effect.
The maintenance of the yellow flag is due to less favorable generation conditions, typical of the dry season, with declining levels in hydroelectric reservoirs and the need to dispatch thermoelectric power plants. The tariff signal maintains short-term pressure on consumers and reinforces the importance of energy efficiency measures and consumption management.
2) Second stage of Transmission Auction No. 1/2026 awards all lots offered
On July 3, 2026, the second public session of Transmission Auction No. 1/2026 was held at B3 in São Paulo. The stage covered the remaining lots of the auction and resulted in the award of transmission concessions for facilities located in the states of Mato Grosso, Mato Grosso do Sul, and São Paulo.
The full award of the lots reinforces the continued expansion of transmission infrastructure, which is necessary to increase the reliability of the National Interconnected System, enable the transmission of power from new generation sources, and reduce regional bottlenecks. On July 24, ANEEL also announced the qualification of the companies participating in the second public session, a preparatory step toward finalizing the concession agreements.
3) EPE and ONS release technical criteria for battery energy storage auctions
EPE and ONS released a technical note setting out the methodology, assumptions, and criteria for determining the remaining capacity of the National Interconnected System associated with the connection of new battery energy storage systems. The document applies to the 2026 capacity reserve auctions focused on energy storage, including the modality requiring domestic content.
The establishment of these criteria reduces uncertainty for developers and financiers, particularly regarding transmission capacity and suitable connection points for project deployment. This technical progress complements the regulatory agenda for energy storage, creating conditions for batteries to participate in a structured manner in the procurement of power and flexibility for the electricity system.
4) EPE publishes guidelines for project registration under LRCAP Storage 2026
EPE published guidelines for the registration of projects interested in the Capacity Reserve Auctions in the form of Power through battery energy storage systems. Developers must register their projects in the AEGE System and submit the documentation required for technical qualification by July 31, 2026.
The registration represents a practical step in the implementation of Brazil’s first procurement cycle for battery energy storage. The market’s response to this call will make it possible to assess project maturity, project locations, and the technology’s ability to contribute to reliability, operational flexibility, and the integration of variable renewable energy sources.
5) Government approves the Ten-Year Energy Expansion Plan 2035
On July 2, 2026, the final version of the Ten-Year Energy Expansion Plan 2035 (PDE 2035), the country’s main medium-term energy planning instrument, was approved. The plan incorporates issues such as a fair and inclusive energy transition, addressing energy poverty, climate change adaptation, and increasing the resilience of energy systems.
PDE 2035 establishes guidelines for the expansion of energy supply over the next ten years and is expected to guide investment, procurement, and sectoral planning decisions. The document also reinforces the need for coordination among generation, transmission, storage, renewable fuels, and security of supply.
6) ANEEL opens second phase of public consultation on electricity meters
From July 1 to August 14, 2026, ANEEL opened the second phase of Public Consultation No. 1/2026 to discuss minimum requirements for electricity meters. The initiative addresses the modernization of metering systems, a topic directly associated with grid digitalization, improved consumption data quality, and the evolution of services provided to consumers.
The adoption of minimum metering requirements may affect distribution companies, consumers, and service providers, particularly in areas such as remote meter reading, loss management, supply quality, billing, and the future integration of more sophisticated tariff structures. The consultation also relates to the gradual opening of the electricity market and the need for more robust metering systems to support greater consumer participation in energy management.
7) CCEE reports 5% increase in electricity consumption in the first half of July
CCEE reported that electricity consumption in the National Interconnected System increased by 5% in the first half of July 2026 compared with the reference period. In the Regulated Contracting Environment, consumption increased by 7.6%, while the Free Contracting Environment recorded a 1.7% increase.
The data indicates a short-term recovery in demand and should be monitored alongside the dry season, the continuation of the yellow tariff flag, and generation costs. Consumption trends also affect procurement projections, distribution companies’ exposure, price formation, and the need for additional power and flexibility resources.
8) Ministry of Mines and Energy reinforces the role of biomethane in converting waste into energy
In July, the Ministry of Mines and Energy highlighted biomethane as an alternative for converting agricultural, sugar-energy, and urban waste into energy. The production of this renewable fuel makes use of organic waste and can generate biomethane, biofertilizers, and other by-products, strengthening the integration of waste management, sanitation, agribusiness, and decarbonization.
The topic is gaining importance in the context of the regulation of the biomethane mandate and the development of the Biomethane Guarantee of Origin Certificate (CGOB). The consolidation of this value chain will depend on sufficient supply, traceability, distribution infrastructure, certification capacity, and regulatory predictability for producers, consumers, and financiers.
9) ANP concludes public participation stage on CGOB certification procedures
In July, the public participation period ended for ANP’s technical information regarding the certification procedures applicable to biomethane producers and importers, aimed at the issuance of the Biomethane Guarantee of Origin Certificate (CGOB), as well as certification monitoring and renewal.
The definition of these procedures is essential to ensuring traceability and credibility in the biomethane market. The CGOB will be an important instrument for demonstrating individual targets, establishing the environmental attributes underpinning contracts, and potentially integrating with other environmental attribute certificates, subject to rules designed to prevent double counting.
10) MDIC participates in new phase of circular economy and plastic recycling project in Recife
In July, the Ministry of Development, Industry, Foreign Trade and Services (MDIC) participated in a milestone related to the second phase of a project aimed at transforming the selective waste collection, plastic recycling, and municipal solid waste management system in Recife. The initiative involves technical cooperation and forms part of the national circular economy agenda, focusing on waste reduction, material recovery, and improved efficiency in urban waste management systems.
The experience may serve as a reference for municipal recycling policies and cooperation models involving public authorities, the private sector, and organizations within the waste management value chain. Projects of this nature are likely to become increasingly important as traceability, reverse logistics, and environmental performance requirements continue to evolve.
11) Government reinforces guidance on reverse logistics for electronic equipment
In July, the Federal Government issued guidance on the reverse logistics of electronic equipment, emphasizing the importance of delivering devices to collection points, stores, supermarkets, or recycling cooperatives rather than disposing of them with regular household waste.
Reverse logistics for electronic equipment is one of the more sensitive areas of Brazil’s National Solid Waste Policy, given the presence of materials with recovery potential and components requiring environmentally appropriate disposal. Expanding the collection and treatment of this waste helps reduce environmental risks, recover materials, and strengthen specialized recycling value chains.
12) Recycling Incentive Law enters final stage for submission of proposals in 2026
The deadline for submitting proposals under the Recycling Incentive Law is July 30, 2026. The mechanism allows for the submission of projects focused on recycling, the circular economy, the productive inclusion of waste pickers, and the development of material recovery value chains.
The approaching deadline is expected to concentrate efforts by applicants and potential sponsors. Following the selection process, the program’s effectiveness will depend on the ability of approved projects to secure funding, meet formal requirements, and deliver measurable results in recycling, socioeconomic inclusion, and waste reduction.
