CEMIG’s Wind Solar Auction On Sept 13, 2019

• CEMIG in Brazil has announced the date of competitive bidding exercise for wind and solar power procurement
• It plans to hold the auction on September 13, 2019 and sell it in the free market, according to a local business paper
• Contracts with the winning projects will be signed with 19-year validity and will be applicable from January 2023 to December 2041

Compañía Energética de Minas Gerais S.A. (CEMIG), a state backed mining company in Brazil, plans to hold a competitive bidding exercise to procure power from wind and solar power plants on September 13, 2019. According to local financial newspaper Valor Econômico, CEMIG will purchase this power and sell it on the free market.

Contracts signed with winners will have a validity of up to 19 years between January 2023 and December 2041. Prices for this power to be sold into the free market will be fixed annually by the country's National Wide Consumer Price Index (IPCA). At the seller's discretion, the contract price may be converted to a decreasing price curve, it said.

The newspaper adds that power sold by interested companies should be delivered to the region where the project is located. However, those projects that are located in the northern region may participate in the auction but will have to sell their power to another submarket.

CEMIG hasn't disclosed individual shares of the 2 technologies.

In the previous auction held by CEMIG in October 2018, it contracted 152.5 MW of solar and wind power capacity for 20-year duration beginning January 2022.

The solar PV market of the country has been making big news of late as in early July 2019, under its A-4 New Energy Auction, Brazil awarded 204 MW of solar with what is being hailed as the world's lowest solar bid – at BRL 64.99 ($16.9) per MWh (see Brazil's A-4 Auction Sets Solar Tariff Record).