Brazil cancels one of Sep 16 tenders due to lack of demand

Brazil’s Ministry of Mines and Energy announced on Tuesday it has cancelled one of the two tenders scheduled for September 16, 2022, due to a lack of demand on the part of energy distributors.

The A-6 tender was supposed to contract new wind, solar photovoltaic (PV), hydro, solid urban waste energy, biomass, biogas, coal and natural gas energy projects starting power supply on January 1, 2028.

Among the several reasons behind the lack of demand, the ministry pointed out three measures currently in progress in the country – the expansion of distributed generation (DG), the proposal for opening the market and the elimination of the quota system of Eletrobras plants, allowing the utility to sell energy at free market prices.

At the same time, the government confirmed it will carry out the A-5 tender on the same date. Power supply from contracted plants in that tender is set to commence on January 1, 2027, with some roughy 83 GW registered to take part in the bidding process.

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