Thermal expansion and capacity auction boost suppliers of generators and turbines in Brazil with nearly 20 GW contracted.

Written by Corporativo

Published on 06/04/2026 at 15:25

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Capacity reserve auctions expand demand for thermal generation and strengthen companies with reliable delivery and consolidated operational history

Furthermore, the result of the Capacity Reserve Auction held in 2026 boosted the Brazilian energy market.
Thus, nearly 20 GW in thermal power plants were contracted, heating the demand for generation technologies.

Therefore, manufacturers of turbines, engines, and generators gained relevance.
In this way, companies with delivery capacity and proven track record began to occupy a strategic position.

Expansion of thermal generation and impact on the market

In this context, the advancement of thermal generation occurs alongside changes in the electrical matrix.
At the same time, the participation of variable renewable sources, such as wind and solar energy, is increasing.

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OnPower contracts reinforce presence in the sector

In light of this scenario, OnPower has signed contracts to supply 300 MW in generators.
These equipment will be allocated to winning projects from the 2026 capacity auctions.

Moreover, the generators will be used in plants with a strategic role.
That is, these units will act to reinforce energy supply during periods of higher demand.

On the other hand, this action occurs especially due to the intermittency of renewable sources.
Thus, thermal plants ensure a quick response to the needs of the electrical system.

Role of capacity auctions in energy security

At the same time, capacity auctions are used as a tool for energy planning.
Thus, these mechanisms enable projects with controllable generation.

Furthermore, these plants can come online as needed by the system.
Consequently, this ensures greater reliability in the national electric supply.

According to industry experts, in analyses conducted throughout 2025 and 2026, this model strengthens energy security.
Therefore, it consolidates as a strategic instrument for the country.

Company operations and regional presence

Additionally, OnPower operates in different fronts of the market.
The company provides solutions for Isolated Systems, industrial applications, and plants connected to the National Interconnected System (SIN).

In this sense, the company has a strong presence in the Amazon region.
On the other hand, operations in this area present significant logistical challenges.

Still, the company also operates in other regions of Brazil.
Moreover, it maintains operations in Argentina, expanding its international presence.

Growth in demand for natural gas

According to OnPower’s engineering manager, Sandro Marchini, there is a clear trend in the sector.
According to him, the demand for solutions based on natural gas is growing.

Furthermore, this movement seeks greater operational and financial predictability.
Thus, projects with higher efficiency gain preference in the market.

Decisive factors for suppliers

Finally, energy sector analysts point out critical factors for the success of projects.
As the ventures move into the implementation phase, new challenges arise.

Among the main points, the following stand out:

Meeting delivery deadlines
Reliability of equipment
Cost structure throughout the lifecycle

Therefore, these elements will be decisive for the performance of projects.
Moreover, they will directly influence the consolidation of suppliers in the market.

Thus, in light of this scenario, the thermal generation sector continues to expand.
Consequently, companies with operational efficiency and technical capacity tend to stand out even more.

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Thermal expansion and capacity auction boost suppliers of generators and turbines in Brazil with nearly 20 GW contracted.

Capacity reserve auctions expand demand for thermal generation and strengthen companies with reliable delivery and consolidated operational history

Expansion of thermal generation and impact on the market

OnPower contracts reinforce presence in the sector

Role of capacity auctions in energy security

Company operations and regional presence

Growth in demand for natural gas

Decisive factors for suppliers

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Thermal expansion and capacity auction boost suppliers of generators and turbines in Brazil with nearly 20 GW contracted.

Capacity reserve auctions expand demand for thermal generation and strengthen companies with reliable delivery and consolidated operational history

Expansion of thermal generation and impact on the market

OnPower contracts reinforce presence in the sector

Role of capacity auctions in energy security

Company operations and regional presence

Growth in demand for natural gas

Decisive factors for suppliers

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