Feb 15 (Renewables Now) - Brazil's Mato Grosso do Sul state government has called for the resurrection of the renewable energy auction scheduled, but cancelled, for January.
In a document signed by governor Reinaldo Azambuja, the state warns that the cancellation of the tender hurts states and the private sector, and results in increased insecurity for investors.
With the termination of the auction, Mato Grosso do Sul lost around BRL 7.5 billion (USD 2.4bn/ EUR 2.3bn) in potential investments. The state planned to secure 20 photovoltaic (PV) projects that, when completed, would have added 1,200 MW of power generation capacity, enough to meet the demand of 600,000 homes.
Mato Grosso do Sul plans to become a renewable energy generation hub and the tender is a fundamental stepping stone to achieve this goal, the state noted.
Energy minister Fernando Coelho Filho in January said the federal government is working on the revision of the current renewable energy tender model due to the recession in the country. The old model worked with a scenario in which the Brazilian economy would grow at a rate of 4.5% per year, which is no longer the case.
(BRL 1 = USD 0.325/EUR 0.308)