Eneva and Industry Coalition Push Natural Gas Inclusion in Brazil’s Data Center Incentive Program

Eneva president Lino Cançado characterized the exclusion of natural gas from eligible clean energy sources in the Redata program as an attempt to create a “market reserve” for renewable energy providers. Speaking at an energy sector event in Rio de Janeiro on June 17, Cançado argued that data centers require continuous electricity supply, making dispatchable sources like natural gas thermal plants inevitable. He warned that renewable-only data centers will ultimately draw from the grid during periods of intermittency, necessitating natural gas backup regardless of policy restrictions.

The industry coalition’s manifesto calls for priority treatment of Bill 278/2026, which establishes a special tax regime for data centers conditioned on renewable or clean energy use. Signatories including the natural gas association Abegás and nuclear association Aben argue that firm, continuous energy supply is essential for data center operations. The current policy paradox requires facilities to maintain diesel generators as backup power, despite sustainability objectives. The ByteDance facility at Pecém Industrial Complex in Ceará exemplifies this contradiction, relying on diesel generators to ensure uninterrupted operations.

Cançado drew parallels to previous legislative attempts to favor specific technologies, citing expired language in the Export Processing Zones provisional measure that would have required exclusive renewable sourcing from new projects. He positioned natural gas as a lower-emission alternative to diesel backup systems, aligning with Eneva’s integrated business model combining natural gas production with proprietary thermal generation.

The executive also defended Eneva’s dominant position in the recent Capacity Reserve Auction (LRCAP), where the company secured 5.06 GW in contracts for natural gas and coal plants. Cançado attributed elevated contract prices to a five-year gap in scheduled annual auctions, arguing that concentrated demand naturally increased volumes and costs. He criticized legal challenges from unsuccessful bidders as undermining sector expansion, noting that Eneva has already begun constructing projects before formal process completion to meet established timelines.

The data center sector projects investments between R$60 billion and R$100 billion in Brazil over the next four years, with regulatory clarity determining whether capital flows to Brazil or competing regional markets.