Brazil

Brazil

Brazil announces biannual tenders to 2021

Brazil has scheduled the first energy auction under president Jair Bolsonaro for 27 June, the first round of biannual tenders to be held through to 2021.

Brazil currently has 15GW of installed wind power capacity - more than any other market in South America (pic credit: Suzlon)
Brazil currently has 15GW of installed wind power capacity - more than any other market in South America (pic credit: Suzlon)

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Wind will compete against hydroelectric, solar PV and biomass projects in the A-4 auction, which has a project registration deadline of 5 April, the ministry of mines and energy (MME) confirmed.

Developers who were already qualified to compete in previous auctions are exempted from re-applying if their projects remain unchanged, and can request the fast-tracked registration of their projects.

The June tender will be the first of six energy auctions to be held in Brazil between 2019 and 2021.

One A-4 auction, in which successful developers must build their projects within four years, and one A-6 tender — in which they must build within six — will be held in each of the next three years.

The first A-6 auction will be held on 26 September, the MME added.

Wind projects must have a capacity of at least 5MW to compete in the June 2019 auction, the ministry stipulated.

It will be the first energy auction held in the country since climate-change denier Jair Bolsonaro was sworn in as president on 1 January 2019.

In the last A-4 energy auction in April 2018, four wind farms secured contracts at BRL 67.60/MWh (then US$19.95/MWh).

In an A-6 energy auction in December 2017, contracts were awarded to nearly 1.4GW of wind farms to sell power at BRL 98.62/MWh (then US$29.74/MWh).

They are due online on 1 January 2023 — the same operational start date for successful projects in the upcoming June 2019 tender.

Brazil currently has 15GW of installed wind power capacity, more than any other market in South America, according to Windpower Intelligence, the research and data division of Windpower Monthly.

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