Brazil

Brazil

Wind dominates Brazil energy auction

BRAZIL: Wind projects once again dominated Brazil's latest energy auction, taking 57% of the capacity on offer.

Manufacturers have had to build factories to meet the local-content rules
Manufacturers have had to build factories to meet the local-content rules

Under the deals struck at the auction, 21 projects will sell power with a capacity of 551MW across the states of Ceará, Pernambuco, Rio Grande do Norte and Rio Grande do Sul, according to electricity trading board CCEE.

Developers Casa dos Ventos Energias Renovaveis and Iberdrola were among those to win contracts.

The average sale price at the end of the two-and-a-half-hour auction was BRL 126.18/MWh ($56/MWh), representing an average discount of 1.37% compared with the established ceiling, CCEE said.

In Brazilian auctions, the government sets a ceiling price and developers bid down the price they are willing to take. However, the government was forced to raise the starting price for this auction to take into account the strict local-content stipulations.

The supply of energy from these wind farms is set to begin in January 2017. Solar projects were not eligible for this auction, but a price was agreed for the power from the 417MW San Antionio hydro project.

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