Brazil's first A-5 energy auction of 2014 will accept proposals for solar projects

Not a single PV project was selected in Brazil's A-3 and A-5 energy auctions held in 2013.

Brazil’s Ministry of Mines and Energy (MME) announced that solar energy projects will be included in the A-5 energy auction that will be held on Sep. 12, 2014. According to the Brazilian Official Journal, the auction will accept proposals for wind, solar, thermoelectric, hydroelectric and biomass power projects.
In 2013, Brazilian authorities held four energy auctions that led to the selection of 177 power projects totaling 6.5 GW. None of these projects, however, was for a PV plant, although the government had accepted solar project proposals in last year’s final A-3 and A-5 auctions. The starting maximum prices for the final two 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. The main Brazilian electricity associations believe that a reasonable price cap for a solar auction would be between 190 and 200 BRL per MWh.
In the A-5 auction held in December of last year, 88 solar projects with a a combined capacity of 2,020 MW competed against 539 wind power projects with a combined capacity of 13,2 GW, 34 hydropower projects totaling 1.6 GW, 7 solar thermal projects totaling 210 MW and 7 thermoelectric plus biomass projects totaling 3.9 GW. However, only wind, hydroelectric and biomass power projects were ultimately awarded power purchase agreements. These wind projects have a combined capacity of 2,337.6 MW, while biomass and hydroelectric projects totaled 161.8 MW and 1,007.7 MW, respectively.

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