Brazil delays renewable energy auction

August 23, 2013
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Brazil’s Ministry of Mines and Energy has postponed an auction for renewable energy power purchase agreements (PPAs) originally scheduled for October.

The ‘A-3’ auction for procurement of power from renewables projects will now be held 18 November.

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Earlier this year the ministry announced Brazil’s national renewable energy auctioning programme would include PV for the first time. The technology had previously been excluded on the basis that PV costs were too high to make it viable.

The country’s fledgling solar industry had hoped for an auction solely for solar, but for now PV will have to compete with other technologies such as wind and hydro for PPAs. The government is offering 20-year PPAs for solar and wind and 30-year contracts for hydro. Successful bids will have to be delivered by 1 January 2016.

The delay in the tender means developers will face a tighter schedule to complete projects.

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