Brazil sets price caps for Dec 20 auction

Transmission lines in Brazil. Image by Gabriel Jabur/AgĂȘncia BrasĂ­lia, via Flickr.

November 16 (Renewables Now) - Brazil's power sector regulator Aneel approved recently the price ceilings for the December 20, 2017 new power generation auction.

This tender will contract power from wind, hydro and thermal plants that use biomass, coal and natural gas resources. Among the renewables, biomass has the highest maximum bidding price, starting at BRL 329 (USD 99.3/EUR 84) per MWh.

In all, the country registered 53,424 MW of projects that want to participate in the bidding process. More details are available in the table below.

Source Registered capacity Price cap in BRL
Wind 26,651 MW 276 per MWh
Biomass 2,068 MW 329 per MWh
Hydro 1,266 MW 281 per MWh
Natural Gas 21,560 MW 319 per MWh
Coal 1,880 MW 329 per MWh

The government will negotiate contracts for specific volumes of electricity, awarding power purchase agreements (PPA) with a 30-year period for hydro, 20-year for wind and 25-year for the remaining soruces. Power supply is scheduled to begin on January 1, 2023.

(BRL 1 = USD 0.302/EUR 0.255)

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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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