Brazil sets price caps for Oct 25 reserve energy auction

Wind park in Brazil. Author: Fotos GOVBA. License: Creative Commons, Attribution 2.0 Generic

October 6 (Renewables Now) - Brazil's power sector regulator Aneel approved on Tuesday price ceilings for the new reserve energy auction scheduled for October 25, 2021.

Dubbed 2021 Simplified Competitive Procedure, the tender will contract power from wind, solar and thermal energy projects which will use biomass, natural gas, fuel oil or diesel as sources. The plants have connected to the Southeast/Midwest and South submarkets.

The highest maximum bidding price is set at BRL 347 (USD 63.8/EUR 55) per MWh for wind, solar and biomass-based projects, and BRL 1,619 for the rest. Power purchase agreements (PPA) are scheduled to begin on May 1, 2022, and last until December 31, 2025.

This new auction is part of the government measures to optimize the use of hydropower resources and to face the current drought Brazil is facing, the biggest in 91 years, Aneel pointed out.

Schemes with an installed capacity less than or equal to 3 MW, for diesel oil plants, and 5 MW for the other sources, are not allowed to enter the tender. All details, including a complete list of deterrents, can be found in Portuguese here:

(BRL 1.0 = USD 0.184/EUR 0.158)

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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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