Technology group Wärtsilä has signed two equipment supply contracts with Origem Energia for the development of new balancing power projects in Brazil. The contracts cover the supply of two batches of 18 Wärtsilä 34SG balancing engines, totaling 36 engines, representing an important milestone in the partnership between the companies. The first order, comprising 18 engines, was booked by Wärtsilä in Q1 2026, while the second order for a further 18 engines was booked in Q2 2026.
Credit: Wärtsilä
Details Wärtsilä 34SG engine
The long-term partnership follows the Reserve Capacity Auction 2026 (LRCAP), the largest capacity auction ever held in Brazil for contracted power. Origem Energia emerged as one of the main winners of the auction, securing projects scheduled to begin commercial operation between 2028 and 2029.
The selected projects include the Pilar and Pilar Nova power plants, set to begin operations in October 2028, as well as the Manguaba I–V projects, scheduled to begin operations in August 2029. The equipment deliveries are scheduled to align with commissioning of the power plants. Together, these projects will contribute to the supply of reliable and flexible capacity to the Brazilian power grid.
“The projects awarded in LRCAP 2026 are intended to provide balancing capacity that supports the reliability of the Brazilian power system as generation of renewable energy increases. As these plants enter commercial operation, they are expected to play a key role in meeting system needs for flexible capacity,” says Luiz Felipe Coutinho, CEO of Origem Energia.
The initiative also highlights Origem Energia’s integrated model, which utilises its own onshore natural gas resources in the state of Alagoas to enable gas-to-wire projects. The company also employs underground gas storage technology, which enhances the flexibility and competitiveness of its operations.
“Projects like these demonstrate the importance of solutions that combine flexibility, reliability, and efficiency to ensure the security of the power system, especially in a scenario of growing renewable energy integration,” says Gaston Giani, Energy Business Director, Region South at Wärtsilä Energy.
The contracts reinforce Wärtsilä’s position as a strategic partner in Brazil’s energy transition, contributing to the efficient integration of diverse energy sources and strengthening energy security in the country.
Beyond marking Origem’s entry into the balancing power generation segment, the projects pave the way for future expansion opportunities and long-term services, consolidating a partnership that can be replicated in future ventures.