Brazil sets price cap for May 27 auction

Brazil wind

April 28 (Renewables Now) - Brazil's power sector regulator Aneel approved a price ceiling for the auction scheduled for May 27, 2022, which will contract electricity from new renewable energy plants.

Dubbed A-4, the auction will contract hydro, wind, solar and biomass-based thermal power projects. The highest maximum bidding price is BRL 315 (USD 62.8/EUR 59.4) per MWh.

Overall, 75,250 MW have registered with Brazil's state-owned energy research firm EPE to take part in the bidding process. Of this, 73,256 MW is wind and solar.

For projects without a contract, the initial price will be BRL 315 per MWh for hydro and biomass-fired, and BRL 225 per MWh for solar and wind.

Regarding projects with both grants and contracts in place, the initial prices will be BRL 268.45/MWh for small and mini-hydro, BRL 187.69/MWh for large hydro and BRL 204.65/MWh for wind.

A-4 will award power purchase agreements (PPA) with a 15-year term for wind and solar, and with 20-year terms for the other sources. Power supply is scheduled to start on January 1, 2026.

(BRL 1.0 = USD 0.200/EUR 0.189)

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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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