Brazil govt sets prices for Sep energy auction

Aug 27, 2014 - Brazil's government has set prices for hydro, wind, solar and thermal power projects for the A-5 energy auction on September 30, sector regulator Aneel said yesterday.

The price cannot exceed BRL 158 (USD 69.9/EUR 53) per MWh for small-scale hydroelectric units of less than 50 MW, BRL 197 for biomass, coal or gas plants and BRL 137 for wind farms and solar plants.

Aneel expressed concern that the prices for hydroelectric and solar energy are not sufficiently attractive. In the case of solar energy, the projects will compete with the same ceiling price like wind energy, which is much more developed on the local market.

However, the price for biomass energy is considered encouraging. At the last auction in June, when the ceiling was BRL 133 per MWh, no biomass project achieved a contract.

The government has registered 1,041 projects of 50.9 GW for the auction, mainly thermal and wind power. The new plants should start supplies in January 2019.

(BRL 1 = USD 0.442/EUR 0.335)

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