Brazil cancels 557.4MW of solar and wind in de-contraction auction

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email
Credit: BNDES

Brazil’s energy agency ANEEL has cancelled nine solar projects totalling 249.7MW of capacity and 16 wind farms with a combined capacity of 307.7MW in its first ever de-contraction auction.

The auction took place due to a high number of projects being contracted in Brazil’s first reserve energy auctions between 2014 and 2015 remaining unbuilt and becoming idle. This was partly the result of inexperienced players partaking in the initial auction. The de-contraction will allow the government to make more accurate predictions about energy generation in the future and avoid a situation of having excess energy.

A release from the Ministry of Mines and Energy (MME) said the de-contractions would also result in the reimbursement of BRL105.9 million (US$33.46 million) to the nation’s Reserve Energy Account (CONER).

The contracts of all 25 projects selected will be terminated via the 2017 Reserve Energy Disengagement Mechanism. Companies successful in the auction will be barred from participating in the next two reserve energy auctions.

A separate report by news outlet Canal Energia said that just 11% of the capacity eligible for de-contracting had been chosen in what would be a dissapointment for the government.

Brazilian energy agency EPE and MME recently released the long-awaited 10-Year Energy Expansion Plan proposition, PDE 2026, projecting the country to reach more than 13GW of solar PV deployment by 2026 and setting the annual additions figures at a steady 1GW.

EPE also recently announced it would hold two energy auctions in December this year, one of which has space for solar to compete.

Read Next

October 4, 2021
Independent power producer (IPP) Total Eren has enlisted asset management software provider Inaccess to monitor the operation of several of its solar PV plants in Argentina, Australia, Brazil, and Kazakhstan.
September 29, 2021
Microinverter supplier Enphase Energy has entered Brazil’s residential and C&I solar market, launching its IQ7+ microinverter in the country.
August 16, 2021
Brazilian energy company Cemig has released details of its latest auction for solar and wind, with 4.8GW of installed capacity entering.
August 11, 2021
Energea Global, a renewable energy investment manager, has announced a US$27 million deal with BTG Pactual to construct a portfolio of solar projects in Brazil.
July 27, 2021
Canadian Solar has closed a BRL500 million (US$100 million) financing facility to develop a Brazilian solar portfolio claimed to be the country’s largest, while also giving it the option to hold built solar assets for longer.
June 14, 2021
Asia boasts a growing number of markets with solar development pipelines in excess of 1GW, a new report by Fitch has found, with the region dominating the consultancy’s project database analysis this year.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
November 10, 2021
8am (PST) | 5pm (CET)
Solar Media Events
December 1, 2021