Brazil sets price caps for Aug 31 auction

Wind turbines in Brazil. Author: josep. License: Creative Commons, Attribution-ShareAlike 2.0 Generic.

July 31 (Renewables Now) - Brazil's power sector regulator Aneel approved today the price ceilings for the power generation auction scheduled for August 31, 2018.

This tender will contract power from wind, biomass and hydropower plants (HPPs), as well as thermal power plants that use natural gas and coal. Among renewables, biomass has the highest maximum bidding price -- BRL 308 (USD 82/EUR 70) per MWh.

In all, the country registered 59,116 MW of projects to participate in the bidding process. Prices can vary based on whether the projects have concessions and contracts.

More details are available in the table below with price caps in BRL.

Source Registered capacity Price cap without contracts Price cap with contracts
Wind 27,142 MW 227 per MWh 171.82 per MWh
Large hydro (UHE) 333 MW 290 per MWh 151.68 per MWh
Small hydro (PCH) 941 MW -----------
Mini hydro (CGH) 65 MW
Biomass 1,040 MW 308 per MWh
Coal 940 MW
Natural gas 28,656 MW

In Brazil, hydropower plants (HPPs) are divided into three groups depending on their capacity. UHE, with capacity exceeding 30 MW, PCH, between 1 MW and 30 MW, and CGH of up to 1 MW.

The government will award power purchase agreements (PPA) with a 30-year term for hydropower, a 20-year term for wind and 25-year for the remaining sources. Power supply is scheduled to begin on January 1, 2024.

(BRL 1 = USD 0.27/EUR 0.23)

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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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