November 15 (Renewables Now) - Brazil's power sector watchdog Aneel announced Tuesday the price ceilings for the A-4 energy auction for new power generation projects to be held on December 18, 2017.
The auction will contract power from solar, wind, hydro and thermal plants that use biomass resources. The highest maximum bidding prices will be BRL 329 (USD 99.3/EUR 84.1) per MWh for solar and biomass plants.
Overall, 1,676 renewable energy projects will compete for contracts, represeting around 47,965 MW of registered capacity. More details in the table below.
|Source||Registered capacity||Price cap in BRL|
|Solar||18,352 MW||329 per MWh|
|Hydropower||1,035 MW||281 per MWh|
|Wind||26,604 MW||276 per MWh|
The tender will negotiate contracts for specific volumes of electricity, awarding 30-year power purchase agreements (PPA) for hydro and 20-year PPAs for the remaining soruces. Power supply is scheduled to begin on January 1, 2021.
On December 23 the country will hold another auction, but in this case solar will not be included and coal and natural gas will be competing.
(BRL 1 = USD 0.302/EUR 0.256)