Brazil schedules 2 auctions for December 7

Brazil's Ministry of Mines and Energy announced it will be holding two energy auctions on December 7, this time to contract energy from existing facilities.

Through a decree published today in the Official Gazette, the government confirmed that the auctions are dubbed A-1 and A-2. The tenders will award power supply contracts with a term starting on January 1, 2019 and January 1, 2020, respectively.

Aside from biomass and natural gas, the government did not specify other energy sources. The energy will be negotiated in Brazil's regulated market in the forms of amount and availability of electricity. In the former case, which consists of biomass and natural gas plants, the buyers may have to bear the hydrological risk, while in the availability model, the sellers will take the risk.

Brazil will hold an energy auction on August 31 for 59,116 MW of already registered renewable energy projects.

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