Brazil

Brazil

Dates set for Brazilian auctions

BRAZIL: The country's Ministry of Mines and Energy (MME) has set dates for two previously announced new energy auctions and a transmission auction.

Brazil’s federal power regulator cancelled power purchase agreements for 308MW of wind farms (pic: Suzlon)
Brazil’s federal power regulator cancelled power purchase agreements for 308MW of wind farms (pic: Suzlon)

It has also announced a third new energy auction to take place on an unspecified date in the first quarter of 2018.

Last month, the energy ministry announced that the auctions were to go ahead, but had not specificed the dates.

Brazil will hold a transmission auction on 15 December, which is to be followed by two energy auctions later that month.

The A-4 new energy auction will take place on 18 December, while the A-6 new energy auction will go ahead on 20 December.

Successful projects in the two auctions will be expected to come online on 1 January, 2021 and 1 January, 2023 respectively.

Holding the transmission auction prior to the new energy auctions would allow potential agents to "have more information on the transmission works necessary for the disposal of the energy", the MME said.

A third new energy auction, A-4, is then due to be held in the first quarter of 2018, the MME said, but it has not yet set a date for it.

The MME is also planning a further A-6 auction for 2018, it said.

Brazil’s recession — in which its economy shrank 8% after two years of negative growth before a 1% uptick earlier this year — has brought project financing to a grinding halt.

In August, Brazil’s federal power regulator Aneel cancelled power purchase agreements (PPAs) for 308MW of wind farms as developers bid to have contracts rescinded for projects stalled since 2014.

The country had postponed and then cancelled a reserve power auction scheduled for last December after the energy ministry said there was a surplus of energy.

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