Brazil approves outcome of termination auction

Wind turbines in Brazil. Author: josep. License: Creative Commons, Attribution-ShareAlike 2.0 Generic.

December 6 (Renewables Now) - Brazil's power sector watchdog Aneel approved on Tuesday all 25 wind and solar plant projects, with a combined capacity of 557.4 MW, awarded during the August 28 termination tender.

The tender, the first of its kind termination auction in the country, contracted a total of BRL 105.9 million (USD 32.6m/EUR 27.6m) in compensation for the withdrawn capacity at an average termination bid of BRL 66.02 per MWh.

Ovearll, 198 renewable energy projects took part in the bidding process, including several hydropower schemes. The approved ones consist of 16 wind projects with a combined capacity of 307.7 MW, and nine solar of 249.7 MW in total.

The concept behind this was to eliminate part of the excess planned capacity in the country's power sector. As a result, the winners of this auction will not be able to take part in any government tender for two years.

Brazil is scheduled to hold two energy auctions this month to contract new power generation projects.

(BRL 1 = USD 0.308/EUR 0.261)

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Lucas is based in Brazil. He joined Renewables Now to expand coverage of the Ibero-American market, a highly attractive destination for green energy investment.

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