Brazil registers 62 GW for Oct 25 reserve energy auction

Solar farm in Brazil. Author: Otávio Nogueira. License: Creative Commons, Attribution 2.0 Generic.

October 7 (Renewables Now) - Brazil's state-owned energy research firm EPE unveiled on Wednesday that 62 GW of energy projects have been registered for the new reserve energy auction planned for October 25, 2021.

The 2021 Simplified Competitive Procedure, as it is named, will contract wind, solar and thermal energy projects which will use biomass, natural gas, fuel oil or diesel as sources to feed the Southeast/Midwest and South submarkets.

Overall, 972 energy projects will compete. From the total 62 GW of registered capacity, clean energy schemes account for 10%.

Among the green sources, biomass is at the top in terms of capacity registered with 6%. Solar follows with 3% and wind accounts for the remaining 1%.

This tender will award power purchase agreements (PPAs) scheduled to begin on May 1, 2022, and last until December 31, 2025. The highest maximum bidding price is set at BRL 347 (USD 63/EUR 54.5) per MWh for wind, solar and biomass-based projects, and BRL 1,619 for the rest.

Power sector regulator Aneel stated that this new auction is part of the government measures to optimize the use of hydropower resources and to face the current drought Brazil is facing, the biggest in 91 years.

(BRL 1.0 = USD 0.182/EUR 0.157)

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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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