Brazil to hold new reserve energy auction in Oct

Brazil's Ministry of Mines and Energy announced on Friday the guidelines for a new reserve energy auction to be held sometime in October 2021.

Through a decree published in the Official Gazette, the government confirmed that the auction, dubbed as 2021 Simplified Competitive Procedure, will contract wind, solar and thermal energy projects which will use biomass, natural gas, fuel oil or diesel as sources.

This tender will award power purchase agreements (PPA) for all the schemes, with supply scheduled to begin on May 1, 2022, and lasting until December 31, 2025.

Investors and interested parties can submit projects for registration at Brazil's state-owned energy research firm EPE. The deadline is ten days counted from the publication of this ordinance.

According to the EPE, 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 the details, including a complete list of deterrents, can be found in Portuguese here.

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