Brazil’s power sector regulator Aneel has set a ceiling price for the power generation auction scheduled for September 30, 2021. The tender, known as A-5, will contract power from wind, solar, hydro, and thermal plants that use biomass, coal, natural gas, or solid waste as fuel. The maximum bidding price has been set at $119.68 per MWh. Other details are given below:
In total, 93,859 MW of projects have been registered to participate in the bidding process. According to the report, the government will issue power purchase agreements for hydropower with a 25-year term, wind and solar with a 15-year term, and other sources with a 20-year term. Projects that were registered with Empresa de Pesquisa Energetica for technical qualification in A-3 and A-4 category auctions of 2021 and maintain the same qualifications can also be allowed to participate in the tender.
Prior to this announcement, the Brazilian government announced auctions for the years 2021, 2022, and 2023 in December 2020, while canceling the A-4 and A-6 new energy auctions scheduled for 2020. Under the A-5 auction, the projects are scheduled to be commissioned by January 1, 2026.