Brazil commissions 2.3GW of wind power in A-5 auction

BRAZIL: Brazilian power distribution companies bought a total of 2.3GW of power from 97 new wind power projects at the last auction of the year.

The tender brings the total of wind power commissioned this year to a record 4.7GW since 2.4GW had already been sold earlier. The contracts settled on Friday had an average price of BRL 109 BRL/MWh ($47/MWh), with delivery due to start in 2018.

Prices were below the BRL 124/MWh in the last auction in November and close to the BRL 110/MWh in the reserve auction in August.

The lower price reflects the longer timeframe for building the projects — five years compared with just over two years — according to Élbia Melo, executive secretary at trade association Abeeolica.

According to Melo, as a result of this year's auctions, 70,000 new jobs will be created and BRL 21 billion will be invested in the next five years.

Mauricio Tolmasquim, president of Brazil's Energy Planning Company (EPE), said that the amount of wind power sold in 2013 more than doubled the local wind turbine demand for 2GW in yearly new project commissions.

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