Arayara Institute vs. Âmbar Sul Energia S.A., ANEEL and Federal Union (UTE Candiota III)

In July, 2025, the Arayara International Institute of Education and Culture - Arayara Institute of Education for Sustainability filed a Public Civil Action (ACP) filed against Âmbar Sul Energia SA, the National Electric Energy Agency (ANEEL), and the Federal Government due to alleged irregularities in the operation of the Candiota III Thermoelectric Power Plant (UTE), located in Candiota, Rio Grande do Sul, and owned by Âmbar Sul Energia SA. The aim is to suspend the UTE's activities and impose specific obligations on the operator and the public entities responsible for monitoring and granting its operation. The plaintiff highlights that, among other irregularities in the plant's environmental licensing process, there is repeated noncompliance with environmental conditions; and the current Operating License (LO) does not establish specific time limits for atmospheric emissions. The UTE also allegedly has several unpaid infraction notices issued against it. Furthermore, the report argues that the plant operates by burning low-quality coal, which exacerbates greenhouse gas emissions and makes it one of the largest GHG emitters in the Brazilian electricity system, contributing to acid rain, degrading air quality, and worsening the climate crisis. It highlights the occurrence of extreme weather events in the country, particularly the 2024 floods in Rio Grande do Sul, which are likely to worsen, arguing that mitigating GHG emissions is urgently needed to mitigate the effects of climate change. It argues that ANEEL has failed to monitor and control irregularities at the project. It argues that the UTE's operations must be halted due to repeated failure to comply with environmental obligations and also to reduce GHG emissions. As a preliminary injunction, it requests: (i) suspension of the plant's LO until all environmental conditions already established by the environmental agency and compliance with legal GHG emission standards are fully met; (ii) imposing a non-action obligation on ANEEL and the Federal Government to refrain from issuing a commercial operating authorization for the project until it complies with the legal requirements; (iii) imposing a non-action obligation on Âmbar to refrain from operating the project without a valid environmental license and all necessary regulatory authorizations; (iv) determining the existence of the action in the registration of the property where the project operates. In the final instance, confirmation of the same requests submitted in urgent relief is requested.