Brazil sets bidding caps for Dec 18 tender
The National Electric Energy Regulator (Aneel) has been authorized by The Brazilian Ministry of Mines and Energy (MME) to hold two auctions for new power generation projects to be held on December 18, 2017.
The tender named A-1 will provide energy between January 2018 and December 2019, while the A-2 will have delivery scheduled for January 2019 and December 2020. The maximum bidding prices will be BRL 329 (US$ 387,38) per MWh for solar and biomass plants.
The tender will contract power from solar, wind, hydro and thermal plants that use biomass resources as follows:
- Solar with a registered capacity of 18,352 MW and a price cap of BRL 329 (US$387,38) per MWh.
- Biomass with a registered capacity of 1,974 MW and a price cap of BRL 329 (US$387,38) per MWh.
- Hydropower with a registered capacity of 1,035 MW and a price cap of BRL 281 (US$330,86) per MWh.
- Wind with a registered capacity of 26,604 MW and a price cap of BRL 276 (US$324,97) per MWh.
An amount of 1,676 renewable energy projects will participate and compete for contracts, representing around 47,965 MW of registered capacity.
Additionally, the auction will negotiate contracts for specific volumes of electricity, awarding 30-year Power Purchase Agreements (PPA) for hydro and 20-year PPA's for the remaining sources. Power delivery is scheduled to begin on January 1, 2021.
The energy marketed in the auctions will be in the regulated environment in the quantity modality and the costs arising from the hydrological risks will be fully borne by the sellers.
