Brazilian A-3 auction faces cancelation

BRAZIL: The Brazilian government could cancel the A-3 aution scheduled for June 28 if there is not enough demand from power distributors.

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The comments came from the president of the federal Energy Plannig Company (EPE) Maurício Tolmasquim.

"The studies are being carried out," he told reporters at the Brazil Wind Energy Conference. "The fact that future power needs have been contracted means that model is a success."

Brazil holds several types of power auctions annually, giving developers one, three or five years to build and deliver the power to distirbution companies. The A-3 auction aims to contract power for January 2015.

Brazil's economic growth, however, has declined from 7.5% in 2010 to 2.7% in 2011 reducing demand for power.

Additionally, tha A-5 auction in 2010 also helped guarantee supply for 2015. Since 2005, when the auctions started, 77% of Brazil's 61.5GW power-supply need through 2020 has been contracted said Tolmasquim.

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