Brazil Allocates 530 MW To Solar Under A-6 Auction

• Brazil has contracted 2,979 MW of total capacity in the A-6 energy auction concluded on October 18, 2019
• Wind leads the winning capacity with more than a GW, solar secured 530 MW in the form of 11 projects
• The average winning tariff for all participating technologies was discovered to be the lowest for solar PV with BRL 84.39 per MWh
• Wind and solar power plants will get to sign power supply contracts for 20-year duration and all projects selected will have to be commissioned by January 1, 2025

The A-6 New Energy Auction of Brazil was quite a disappointing round for solar PV technology that managed to grab only 530 MW of total capacity out of 2,979 MW awarded in the form of 91 projects. The actual amount of capacity registered for this auction was over 71 GW of which solar PV contributed the largest part at 24.75 GW (see Brazil Qualifies Over 71 GW Capacity For A-6 Auction).

However, as against the ceiling tariff of BRL 209 ($51.16) per MWh for solar PV, it finally received an average winning price of BRL 84.39 ($20.44) per MWh, which is the lowest among all participating technologies. Overall, the average winning bid for the auction turned out to be BRL 176.09 ($42.65) per MWh.

Of all the capacity awarded, wind power technology led the winning tally with 44 wind farms to install 1.04 GW capacity, followed by three natural gas projects with 734.13 MW, and 11 solar PV projects with 530 MW of power, according to the country's National Electric Energy Agency (ANEEL).

The remaining capacity of 253.64 MW was allotted to small hydroelectric (SHP), 229.62 MW to biomass, 177.9 MW to hydropower and 13.61 MW to hydroelectric generating plants (CGH).

Winning projects will be spread across the country, with Bahia getting the maximum – 26 plants, followed by 14 in Rio Grande do Norte and 11 in Santa Catarina. Barring wind and solar PV projects that will get 20-year power supply contracts, the other technologies will each have 30-year terms. The projects will be required to come online and start supplying power from January 1, 2025.

This was the first time solar PV was allowed to compete in Brazil's A-6 energy auction series (see Solar Gains Entry In Brazil's A-6 Auction). In this year's A-4 energy auction, solar PV secured the lowest solar bid of BRL 64.99 ($16.9) per MWh with an average winning bid of BRL 67.48 ($17.5) per MWh and the highest capacity of 204 MW out of 401.6 MW awarded (see Brazil's A-4 Auction Sets Solar Tariff Record).