The Brazilian government brought good news to the wind energy market in the first day of Brazil Windpower 2015 in Rio de Janeiro.
A price cap review for the next auction is scheduled to take place this November. These is for an A3 auction, where the wind farms must be ready to generate energy three years from auction date.
"The ceiling price will be revised upwards for the next auction," said Mauricio Tolmasquim, president of the Energy Research Company (EPE).
The last auction in August, had a ceiling price of BRL184/MWh ($51.25/MWh) for the power, but this was reduced by bidders to secure the contract, and the closing price at the end of the auction was BRL181.14/MWh, a drop of 1.6%.
According to Tolmasquim, the ceiling price review will take into account a number of factors, including the financing conditions, the exchange rate and the country’s economic scenario.
Brazil's rate of inflation has been steadily increasing over the last year, and the country's currency has seen significant depreciation in recent months relative to the dollar.
Tolmasquim did not give a recommended ceiling price, but Elbia Gannoum, president of Abeeolica the Brazil wind energy association, said today that an acceptable ceiling price for the auction would be BRL210/MWh to BRL230/MWh.
Wind energy is expected to feature heavily in the future auction.