IPPToday #278: Brazil awards contracts to 835 MW projects in latest energy auction
- 176 MW Jerusalem wind project in Rio Grande do Norte
- 253 MW Monte Verde wind project in Rio Grande do Norte
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Brazil's Câmara de Comercialização de Energia Elétrica (CCEE - Chamber of Electric Energy Commercialisation) has awarded power purchase agreements for projects with 835 MW total generation capacity in its latest energy auction. The contracts awarded represent BRL23.6 billion (US$575.7 million).
62 energy generation projects have been contracted: 11 hydroelectric plants (78.7 MW in total), 48 wind power plants (420.1 MW), one biomass-fired power plants (9.8 MW) and one natural gas-fired power plant (326.4 MW). All of the projects are expected to commence commercial operations before 1 January 2024.
Hydropower projects were awarded 30-year contracts, while wind and thermal power projects have won 20- and 25-year contracts, respectively.
The average purchase price is BRL140.87 (US$34.365) per MWh. This is 46.89% lower than established energy prices in Brazil, representing a saving of BRL20.9 billion (US$5.1 billion) for energy consumers.
19 energy distribution companies participated in the auction. Centrais Elétricas de Rondônia (Ceron), Companhia Energética de Minas Gerais (Cemig) and Companhia Energetica de Pernambuco (Celpe) contracted the most capacity, taking 21.4%, 16.48% and 10.1% of the total capacity traded, respectively.
A large majority of the contracted projects are located in Rio Grande do Norte (27) and Bahia (21) states, both located in the north-east. Eight more of Brazil's 26 states are represented in the auction results - Paraná, São Paulo, Minas Gerais, Goiás, Mato Grosso, Santa Catarina, Rio Grande do Sul and Maranhão.
International participation in the tender was substantial, with Brazilian subsidiaries of EDF (France), EDP Renováveis (EDPR, Portugal), Enerfin (the wind-focussed arm of Spanish Elecnor) and Voltalia (France) on the list of winning project owners.
EDPR has announced that its capacity will be installed as two wind farms located in Rio Grande do Norte, namely Jerusalem with registered capacity of 176 MW and Monte Verde with 253 MW. The price of the contracts awarded for the wind farms was set at BRL94 (US$22.9) per MWh and BRL87 (US$21.2) per MWh respectively.