Sep 5 (Renewables Now) - Brazil’s only tenders in 2017, scheduled for December, will contract at least 6.4 GW and up to 9 GW of capacity, an informed person told Bloomberg.
According to the report, the second auction will be much bigger, awarding contracts to between 5 GW and 7 GW of projects.
The A-4 and A-6 auctions will award contracts for power supply starting in early 2021 and early 2023, respectively. Both tenders will negotiate power contracts from hydro, wind and biomass sources. A-4 will also award contracts to solar power, while A-6 will allow coal and natural gas, the ministry said in August.
In 2016, the Brazilian government cancelled auctions for renewables, saying that the country did not have the need to secure new capacity. Demand for energy has been hurt by the recession, but there are now signs of recovery.
Near the end of August, the energy ministry cancelled 557.4 MW of wind and solar projects in the first of its kind termination auction in the country. The idea behind it was to eliminate part of the excess planned capacity.