Brazilian state of Pernambuco allocates 123 MW through its first solar auction
Post date: 07/01/2014
Recursos Hidricos e Energeticos (SRHE), the energy agency of the Brazilian state of Pernambuco, selected six PV projects totaling 122.8 MW through its first solar-only energy auction, which was held on Dec. 27, 2013. The six projects have a power range of 5 to 30 MW and will require a global investment of 597 million BRL ($251 million). The auction ended with an average price of 228.6 BRL per MWh – the starting maximum price for the auction was 250 BRL per MWh.
SRHE awarded Italian renewable energy developer Enel Green Power contracts to build two 5 MW projects in the municipality of Tacaratu, while the local subsidiary of German renewable energy company Sowitec was awarded a contract to develop a 30 MW project in the municipality of Santa Maria da Boa Vista. Meanwhile, Brazilian companies Kroma Comercializadora de Energia Ltda and Cone Concierge S/A were selected to build a 29.2 MW plant in Flores and a 22.8 MW plant in Cabo de Santo Agostinho, respectively. Chinese-Spanish company Sun Premier Holding Participações Ltda will develop a 29.7 MW PV project in Joaquim Nabuco.
In Brazil’s A-3 and A-5 energy auctions held in November and December, respectively, the starting maximum prices for the auctions were 126 BRL and 122 BRL per MWh for all types of projects, respectively. These rates were especially favorable for wind projects, which in the end dominated both auctions. Not a single PV project was selected in either auction. The main Brazilian electricity associations believe that a reasonable price cap for a solar auction would be between 190 and 200 BRL per MWh.