Brazil Announces PV Auction For Dec. 2017

• Ministry of Mines and Energy (MME) in Brazil has announced two new energy auctions - A-4 and A-6 are scheduled for December 2017
• While solar PV has been included in A-4 auction, it has been excluded from A-6 auction; wind power is eligible to both
• Brazil's solar lobby association ABSOLAR asks A-6 auction to be open for solar as well
• There are plans for two more energy auctions for 2018, but it is not clear what technologies will be included

Solar technology is eligible to participate in one of two auctions planned for December 2017 in Brazil. The Ministry of Mines and Energy (MME) has officially published an ordinance that establishes guidelines for these auctions – New Energy Auction A-4, 2017 and New Energy Auction A-6, 2017.

Winners of the New Energy Auction A-4, 2017 will sign power supply contracts for 30 years for hydroelectric plants and 20 years for solar PV, wind, biomass and thermoelectric plants. The New Energy Auction A-6, 2017, will be only open to hydroelectric, coal-fired thermoelectric, biomass and wind power plants.

Interested firms are required to submit their documents by September 6, 2017.

The Brazilian Solar PV Association ABSOLAR strongly criticises the exclusion of solar in the A-6 auction. ABSOLAR President Rodrigo Sauaia believes that this 'unequal treatment' would lead to severe damage to this renewable resource. "The decision may also hurt consumers as the (solar) source has increasingly competitive prices that are rapidly decreasing each year," said Sauaia, adding, "Leaving solar photovoltaic outside of power auctions would be a major setback, with which we disagree deeply."

The association says it will request the government to open the A-6 auction for solar as well.

Post these, another auction is scheduled for the first quarter of 2018, referred to as A-4 Energy Auction. And after these, there is a New Energy Auction A-6, 2018. Both are currently in the planning stages. The ministry has not specified which technologies will be eligible to participate in these two auctions.

ABSOLAR had recently stated that it expects the government to hold a solar energy auction in 2017. It believes the country is likely to achieve 1,000 MW of solar PV capacity by the end of 2017 (see Brazilian PV Capacity To Reach 1 GW By Year End).

In its 10-year Energy Plan shared in July 2017, MME expects the country's PV capacity to reach 13 GW by 2026 (see Brazil Projects Over 13 GW PV By 2026).