Brazil's Renova eyes high bidding in Aug 28 solar auction

Renova Energia SA's (BVMF:RNEW11) investor relations and new business head, Pedro Pileggi, is optimistic about the prospects of the August 28 solar auction and expects increased bidding.

During Renovas's second quarter results presentation on Wednesday, the director said the federal government's readiness to develop the domestic solar market will drive investor interest. The reserve energy auction for solar sources, with supply starting on August 1, 2017, has also an attractive price cap of BRL 349 (USD 99.5/EUR 91.3) per MWh.

According to Pileggi, the government will have to ensure annual solar demand of between 200 MW and 300 MW to support the development of the domestic solar module industry. For cell manufacturing to make sense, annual solar demand of 800 MW-1,000 MW is needed.

At the same time, Pileggi expressed pessimism as regards to the energy auction A-3, set to be held on August 21, due to the tight construction period of the projects. It targets wind, hydro, biomass and natural gas-fired power capacity.

(BRL 1 = USD 0.285/EUR 0.262)

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