Brazil's Axia will invest up to US$2.7bn per year

Brazil's Axia Energia plans to invest between 12 billion reais (US$2.3bn) and 14bn reais per year in 2026 and 2027, the company reported on Friday (February 27).

The projection uses as a reference the level achieved in 2025, of 9.6bn reais, and incorporates the expectation of increased investments in transmission, including contributions already contracted in the latest auctions, as well as the expected acceleration of investments in reinforcements and improvements over the next two years.

The projected capex also includes amounts allocated to the modernization and strengthening of the resilience of generation assets.

Auctions

In a conference call with investors, Axia indicated its intention to participate in the capacity reserve auction (LRCAP) on March 18, with hydropower projects in the pipeline.

“Just in hydro capacity, we look at the group’s potential in the medium and long term, at around 6GW,” said Elio Wolff, director of strategy and business development. “We will enable a portion of that and we will take part.

Meanwhile, Axia is considering taking part in the auction for energy storage, scheduled for mid-year.

“We have already surpassed 4GW of battery pipeline and we are trying to understand the rules and figure out how much of those 4GW we can actually offer,” the executive explained.

Wolff also said that the company is keeping an eye on the transmission auctions scheduled for this year.

"There is an auction now, on March 27, and another already pre-scheduled for October, the end of October”, in addition to possible further opportunities if “terminations” by other participants occur.

Among the cases of contract termination are those of the lots auctioned off to MEZ that were not built within the deadline and may be returned amicably.

Data centers

Axia has confirmed that it is in preliminary talks with players in the data center sector, but said that the country still needs to “fine‑tune” infrastructure and system operating conditions to receive large loads.

The country’s power grid is congested, with a queue of projects – including data centers, hydrogen plants, and renewable power generation plants – competing for access to the transmission network.

(The original version of this content was written in Portuguese)