IPPToday #121: Enel wins 618 MW of wind capacity in 3.8 GW tender in Brazil
- Enel Group
- 510 MW Lagoa do Barro wind project
- 78 MW Morro do Chapéu II wind farm
- 210 MW Delfina onshore wind farms in Bahia
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The Power Trading Chamber (CCEE) of Brazil has announced that more than 3,841.6 MW of power supply contracts were awarded in the tender that took place yesterday. Around 572,518,389 MWh were awarded for a total BRL108.46 billion (US$32.96 billion), or an average price of BRL189.45 (US$57.5) per MWh.
Of the 63 winners, Italian energy developer Enel won the largest sum: 618 MW.
The auction tendered contracts for various energy sources. This included 2,138.9 MW of natural gas, 1,386.6 MW of wind power, 177 MW of biomass and 76.5 MW of hydropower. The winners of hydropower contracts will sign 30-year power purchase agreements (PPA), those awarded wind contracts will sign 20-year PPAs and successful bidders of all other contracts will sign 25-year PPAs. Power supply is scheduled to begin on January 1, 2023.
Through its local subsidiary, Enel Green Power Brasil Participacoes Ltda (EGPB), Enel won three wind projects with 20-year PPAs attached. These include the 510 MW Lagoa do Barro wind farm to be built in the eastern state of Piaui and the 78 MW Morro do Chapeu II wind farm to be built in Bahia, also in the east of the country. Enel also won a 30 MW extension of its 180 MW Delfina wind park in Bahia, which began commercial operation earlier this year.
Enel estimates that construction of the plants will require an approximate investment of US$750 million. Completion is forecast in early 2023. The collective annual output will be around 3 TWh.
This follows Enel's success in another renewable tender in Brazil, which took place on Monday. The company won 388 MW of solar capacity, more than any other solar bidder. In total, 674 MW of renewable power was awarded. Enel will sign 20-year PPAs for the projects. The Brazilian energy regulator ANEEL stipulated that the plants must be connected to the grid by 2020.
The results of these two tenders amount to a total capacity of over 1 GW and a total investment of approximately US$1 billion. This will add to Enel's already extensive portfolio in Brazil, which comprises a total installed renewable capacity of nearly 2.66 GW. This consists of 670 MW of wind power, 716 MW of solar photovoltaic and 1,270 MW of hydropower in operation, and 172 MW of wind and 103 MW of solar capacity under construction.