Brazil To Hold A-5 New Energy Auction On Sept 30, 2021

Brazil will hold its next auction to procure new energy generation projects in the A-5 category on September 30, 2021, the Ministry of Mines and Energy (MME) confirmed. It has published a decree to this effect in the country’s official gazette.

Power generation technologies to be accepted under this tender include solar PV, hydroelectric, wind, biomass, thermoelectric, coal, natural gas and solid urban waste power projects. Only hydropower projects proposed in the tender need to have a capacity of more than 50 MW and need to submit these projects for registration by May 10, 2021. For all other technologies, the deadline to enter registration round is June 2, 2021.

Projects that were registered with Empresa de Pesquisa Energetica (EPE) or the Energy Research Office of MME 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.

Solar and wind power projects will be eligible for 15-year power purchase agreements (PPA), while hydropower projects will be signed up to supply power for 25 years, and all other technologies will be contracted for 20 years, according to the ministry.

The ministry had been considering holding both A-5 and A-6 auctions on the same day, but now it has decided to evaluate the realization of A-6 auction of 2021 after the completion of planning of the Capacity Reserve Auction. It will disclose conditions to meet the market growth of SIN distributors for the year 2027 and decide on the feasibility of holding A-6 auction in 2021, once the guidelines of holding the Capacity Reserve Auction are defined.

In December 2020, the ministry had shared an auction schedule for the years 2021, 2022 and 2023, while cancelling A-4 and A-6 new energy auctions for 2020 (see Brazil Announces 3-Year New Energy Auction Schedule). According to the auction schedule, A-3 and A-4 auctions will be held in June 2021.