Brazil

Brazil

Brazil approves 9GW to enter wind auction

BRAZIL: Brazil's federal government has approved 377 wind projects with a total combined installed capacity of 8.999GW to participate at the upcoming wind power auction on 23 August , the Energy Planning Company (EPE) said in a statement today.

Wind developers will compete for 20-year contracts with delivery starting on January 2015 and a ceiling price of BRL 117/MWh ($50/MWh). They had sought approval for a total of 665 projects with a combined installed capacity of 16GW, EPE said.

The north-eastern state of Bahia leads with a total capacity 2.9GW in projects, followed by the southern state of Rio Grande do Sul with 2GW.

According to bidding rules, this year only projects that guarantee a connection to the grid will be able to sell power.

The government wants to avoid problems seen last year, when 622MW was installed but unable to deliver the power to the country's 110,000-kilometre national grid because of a lack of local connections.

So far this year, two wind power projects with a combined capacity of 30MW have been completed but have not been connected to the grid, according to data from Brazilian wind power association Abeeolica.

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