BRL 276/MWh Solar Tariff Cap For Brazil’s A-4 Auction

Brazil’s National Electric Energy Agency Releases Price Caps For Participating Renewable Energy Technologies For A-4 Auction Scheduled For June 28, 2019; Tariff For Solar Projects Capped At BRL 276/MWh
12:50 AM (Beijing Time) - 31. May 2019
BRAZIL A4 auction

Solar power projects registered for the A-4 New Energy Auction in Brazil due to take place on June 28, 2019 have BRL 276 ($68.57) per MWh as the tariff cap. In comparison, wind power projects have the lowest cap of BRL 208 ($51.68) per MWh while biomass has the highest at BRL 311 ($77.27) per MWh, according to Aneel.

Key Takeaways

  • Tariff caps for renewable energy technologies participating in A-4 New Energy Auction of Brazil have been declared
  • While biomass has got the highest tariff cap of BRL 311 ($77.27) per MWh, solar’s been fixed at BRL 276 ($68.57) per MWh
  • Out of total 51.2 GW project capacity registered, wind and solar have each secured 751 projects but with capacity of 23.11 GW and 26.25 GW
  • The auction is scheduled to take place on June 28, 2019 and successful projects are expected to start commercial operations by January 2023

The National Electric Energy Agency (Aneel) of Brazil has announced tariff caps for the A-4 auction scheduled for June 28, 2019. Projects using solar PV technology cannot bid beyond BRL 276 ($68.57) per MWh.

Compared to solar, wind power project tariff has been capped at a lower level of BRL 208 ($51.68) per MWh, while hydropower’s cap is BRL 288 ($71.56) per MWh and the highest tariff cap has been fixed for biomass at BRL 311 ($77.27) per MWh. All these price caps are for projects without contracts. Separate price caps have also been announced for hydro and wind power projects with contracts.

There is high interest for this auction – the Energy Research Company (EPE) of Brazil registered 1,581 projects representing 51,204 MW of total capacity in April 2019. Out of these wind and solar power projects have each got 751 projects, but with varying capacity of 23.11 GW and 26.25 GW, respectively (see Over 51 GW Proposals For Brazil June 2019 Auction).

Project developers that are successful in the auction will be able to sign power purchase agreements (PPA) over 30 years for hydropower plants and 20 years for wind and solar. Commissioning deadline will be January 2023.

Solar also has the A-6 energy auction ahead, which is to be held on October 17, 2019. Previously, it was scheduled for September 26, 2019 (see Brazil Pushes Back A-6 Auction To Oct 2019).

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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Anu Bhambhani