• CEMIG in Brazil has awarded contracts to 476.2 MW of solar and wind power capacity
  • These projects, whose location or winners were not revealed, will start supplying power from January 2023
  • Another Brazilian agency ANEEL has announced ceiling tariffs for various technologies participating in the A-6 energy auction on October 18, 2019
  • Solar PV technology projects can only bid with tariffs up to BRL 209 per MWh

Brazilian energy distribution company Cia Energetica de Minas Gerais SA (CEMIG) says it has contracted 476.2 MW of renewable energy capacity in an auction conducted on September 13, 2019. This capacity comes from an undisclosed ratio of solar and wind power. The projects will be required to supply electricity for a period of 19 years starting January 2023.

In July 2019, local financial newspaper Valor Econômico reported CEMIG to hold a competitive bidding exercise on September 13, 2019 to procure solar and wind power and sell the power on the free market (see CEMIG’s Wind Solar Auction On Sept 13, 2019).

Tariff limits for A-6 auction

Separately, the country’s National Electric Energy Agency (ANEEL) announced tariff limits for projects participating in the A-6 energy auction scheduled to be held on October 18, 2019. For solar PV projects, the ceiling tariff is BRL 209 ($51.16) per MWh, whereas the highest tariff limit of BRL 292 ($71.47) per MWh has been fixed for thermoelectric projects. The second highest tariff limit of BRL 285 ($69.76) per MWh has been reserved for hydroelectric technology, while wind has got the lowest tariff limit of BRL 189 ($46.26) per MWh.

Brazil has registered more than 1,800 projects for the A-6 auction with total bids of 101 GW of which 29.78 GW are solar PV technology projects, making it the technology with the second highest capacity registration in the auction preceded only by more than 41 GW proposed for natural gas. Originally, the country’s Energy Research Company (EPE) announced the A-6 2019 auction date as October 17, 2019 (see Over 100 GW Bids For Brazil’s A-6 Oct 2019 Auction).

Projects contracted under the A-6 auction will be required to become operational by January 1, 2025.