Aneel Withdraws Authorizations For The Operation Of Karpowership’s Natural Gas Floating Power Plants In Rio de Janeiro Due To Project Delays

The Project for Installing Four Floating Natural Gas Power Plants in the State of Rio de Janeiro Was Not Delivered as Expected by Karpowership, and the Company Has Just Lost ANEEL Authorizations for the Project.

The Collegiate Board of the National Electric Energy Agency (ANEEL) voted to revoke the authorizations granted to Karpowership for the operation of four floating thermal power plants using natural gas in the state of Rio de Janeiro. The energy company communicated that it disagrees with the agency’s justification, which emphasizes the project delay as the main reason for the decision, but continues to support the Brazilian market.

ANEEL Authorizations for Karpowership’s Four Floating Natural Gas Power Plants Project in Rio de Janeiro Are Revoked in Voting

After a series of inconsistencies in the project contract with Karpowership, ANEEL announced this week the revocation of the necessary authorizations for the operation of four floating natural gas power plants in Sepetiba Bay, Rio de Janeiro.

The structures were contracted during the emergency reserve energy auction (PCS) and were supposed to start feeding energy into the state grid on May 1, 2022, but were not properly operated by the company.

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Despite this, ANEEL extended the deadline for the start of energy supply at the floating natural gas power plants to August 1, 2022. Again, Karpowership failed to meet its project agreement and did not deliver the resource to the state of Rio de Janeiro.

Thus, ANEEL’s board voted for the revocation of the authorizations granted to the company, and ANEEL director Hélio Guerra, the rapporteur of the matter, emphasized that the plants ceased to serve their purpose the moment they were not operated on the scheduled date.

Karpowership’s lawyer, Beatriz Watanabe Silva, argued that the lawsuits that occurred during the development of the floating thermal power plants project in the state prevented the start of operations.

However, she emphasized that if that had not been the case, the company would have started the supply of the resource on the scheduled date. Nonetheless, ANEEL reiterated that the specifications of the auction notice determined that delivery was to be made on the scheduled date, which was not fulfilled by the energy company.

Company Speaks Out and States Disagreement with ANEEL’s Decision on Revocation of Authorizations for Its Floating Thermal Project

The rapporteur of the voting, Guerra, also stated that the plants can request participation in other auctions or request grants to operate in the free market. Furthermore, the process directed the Superintendency of Service Generation Inspection to initiate a process for the possible imposition of penalties on the company in the event of non-installation of the natural gas thermal plants.

Karpowership publicly issued a statement regarding the revocation of the authorizations for the continuation of its project in the state and stated that it disagrees with the decision. However, it continues to support the national market, aiming to make the energy production sector fairer, safer, and more competitive with the development of new resource production projects in the future.

“The company is confident in its arguments and emphasizes that it followed all legal procedures and requirements necessary to fulfill its responsibilities, even with a challenging deadline to start operations. We believe that the process needs an analysis of the new elements that have emerged in recent weeks, such as the injunction from the TJ-RJ that determined the suspension of the project. The company will take all available legal measures and believes that the Brazilian justice system will prevail,” said the company.