- Two equipment supply contracts cover 36 Wärtsilä 34SG engines supporting new balancing capacity in Brazil.
- Projects from Reserve Capacity Auction 2026 will deliver 371 MW of flexible generation between 2028 and 2029.
- Plants will enhance grid reliability as renewable energy penetration increases in Brazil.
Technology group Wärtsilä has signed two equipment supply contracts with Origem Energia for the development of new balancing power generation projects in Brazil, marking a significant step in strengthening system flexibility in the country’s evolving electricity market.
The contracts cover the supply of 36 Wärtsilä 34SG balancing engines, split into two equal batches of 18 units each. The first order was booked in the first quarter of 2026, while the second was secured in the second quarter of 2026.
The combined projects will deliver 371 MW of new capacity and are linked to Brazil’s Reserve Capacity Auction 2026, the largest capacity procurement exercise ever conducted in the country. Origem Energia emerged as one of the key winners of the auction, securing long term contracted projects designed to reinforce grid stability as variable renewable generation continues to expand.
The projects include the Pilar and Pilar Nova power plants, scheduled to begin commercial operation in October 2028, along with the Manguaba I to V developments, which are planned to enter operation in August 2029. Equipment deliveries will be timed to align with construction and commissioning schedules, ensuring smooth project execution.
Origem Energia noted that the projects are designed to provide balancing capacity that supports the reliability of the Brazilian power system as renewable energy generation increases. The company highlighted that the assets will play a critical role in meeting system demand for flexible generation once they reach commercial operation.
The projects also reflect Origem Energia’s integrated operating model, which leverages its onshore natural gas resources in the state of Alagoas. The company uses these resources to support gas to wire generation projects and employs underground gas storage to improve operational flexibility and commercial competitiveness.
From Wärtsilä’s perspective, the partnership reinforces the importance of flexible generation technologies in enabling secure power systems with high shares of renewable energy. The company emphasised that balancing solutions such as these are essential for maintaining reliability in modern electricity grids.
The agreement further strengthens Wärtsilä’s position in Brazil’s energy transition, expanding its footprint in flexible power generation solutions while supporting long term service opportunities linked to the new assets.
Author: Bryan Groenendaal
