Brazil sets price cap for Dec 4 auction

Brazil's Copel Cutia Wind Complex in Rio Grande do Norte

November 10 (Renewables Now) - Brazil's power sector regulator Aneel approved the price ceiling for the auction scheduled for December 4, 2020, which will contract electricity from existing plants.

The A-1 Existing Energy Auction will have an initial bid price of BRL 160 (USD 29.7/EUR 25.2) per MWh. It will award contracts to available power plants in the country for volumes of electricity supplied.

According to Aneel, the power purchase agreements (PPA) will have a two-year term with power supply scheduled to begin on January 1, 2021 and end on December 31, 2022.

The announcement was made at the same time the country unveiled its new energy auction system. Created by Aneel and the Power Trading Chamber (CCEE), the new tool has several innovations in the pre and post-auction stages.

One of the main improvements lauded by the power regulator is that now the entire process is held digitally, without the need for physical documentation.

(BRL 1 = USD 0.186/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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