Brazil sets price caps for June 25 auctions

Solar PV plant in Brazil

May 19 (Renewables Now) - Brazil's power sector regulator Aneel approved on Tuesday the price ceilings for the power generation auctions scheduled for June 25, 2021.

Dubbed A-3 and A-4, the tenders will contract power from wind, solar, hydro and biomass-based thermal plants. The highest maximum bidding price is set at BRL 292 (USD 55.5/EUR 45.4) per MWh.

In all, the country has registered 66,862 MW of projects that want to participate in the bidding process. More details are available in the table below.

Source Registered capacity MWh price cap in BRL
Solar 41,852 MW 198
Wind 22,667 MW 198
Biomass 1,358 MW 292
Hydropower 985 MW 292

The government will negotiate contracts for specific volumes of electricity, awarding power purchase agreements (PPA) with a 30-year period for hydro, 25-years for biomass sources and 20-year for wind and solar sources. Power supply is set to commence on January 1, 2024, for A-3 and January 1, 2025, for A-4 winners.

(BRL 1.0 = USD 0.190/EUR 0.156)

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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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