Brazil solar auction price cap ‘well received’ by market

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email

Brazil’s energy regulator National Electric Energy Agency (ANEEL) has set a cap price of BRL349 (US$104)/MWh for its solar-only auction to be held on 28 August.

The cap is around 33% higher than for the country's first solar-exclusive auction held in October 2014, which had a fixed price of BRL262/MWh. During the auction, this fell to a final average price of BRL215/MWh.

Brazilian Photovoltaic Solar Energy Association (Absolar) said the higher cap has been well received in the market, and chief executive Rodrigo Sauaia said: “The price gives a positive signal of the federal government's interest in developing PV solar. We are confident for the auction […] for sure the competition will be very fierce.”

Executive director of sustainability at Ernst Young, Mário Lima, said the price came in well above expectations giving scope for the market to absorb the rise of the dollar, and higher financing difficulties in the Brazil.

He added: “The rate of return will be interesting. I think it will be better than in some projects that were presented at the first auction.”

The Brazilian real has lost around 38% against the dollar since last October, sparking concern in the solar market because most PV equipment will be imported, according to Absolar. However PV Tech reported this month that the Brazilian senate has passed a bill to reduce the tax burden on imports of certain components and machinery used in the production of PV equipment, which is set to aid companies looking to set up PV equipment manufacturing in the country.

Wining projects of this year’s auction will need to start supplying energy to the grid in 2017 under 20-year power purchase agreements (PPAs).

Brazil's Energy Research Company (EPE) received 382 applications from solar projects totalling 12.5GW in capacity.

According to EPE, the majority of the projects are located in the North-East of Brazil, with 140 projects with a total 4.4GW of capacity in the states of Bahia. ANEEL director Reive Barros said this was due to the region’s vocation for solar initiatives and the economic potential for th region’s development.

The states of Piaui (2.1GW) and Minas Gerais(1.3GW) had the next highest amount of applications.

Electric Energy Trading Chamber (CCEE) will operate the online auction while based in São Paulo.

Meanwhile, earlier this month, EPE registered 649 solar projects totalling 20.9GW capacity for its second Reserve Energy Auction, which is scheduled for 13 November this year.

2 December 2021
Intersolar is the world’s leading exhibition & conference series for the solar industry. As part of this event series, Intersolar India in Mumbai is India’s most pioneering exhibition and conference for India’s solar industry. It takes place annually and has a focus on the areas of photovoltaics, PV production and solar thermal technologies. Since 2019, Intersolar India is held under the umbrella of The smarter E India – India’s innovation hub for the new energy world.
9 December 2021
The Smart Energy Council is hosting Australia’s second Virtual Smart Energy Conference and Exhibition on Thursday, 9 December 2021. This event will show that the industry powers on despite COVID-19 and we are standing together undeterred in spirit. Bringing our global community together using the latest technology.
13 January 2022
Intersolar North America and Energy Storage North America “Come Together” for the first time in Long Beach, CA—connecting installers, developers, utilities, technology providers, policy makers, and key stakeholders from around the world to advance the clean energy future. With best-in-class conference programming, integrated exhibits and pavilions, and the live Solar Games installer competition, #isnaesna21 will showcase the industry trends, innovative solutions, and emerging talent transforming the solar, energy storage, and e-mobility markets. Register today to redeem our exclusive offer for PV Tech readers—free expo hall or 20% off full conference pass.
1 February 2022
As Solar Finance & Investment enters its ninth year, we sit on the cusp of a new power market with solar at its heart. The 2022 edition of the event will build on our years of expertise and relationships to bring investors and lenders together with top developers. Connect with leaders in the field and use exclusive insights to drive investment and development decisions for the future. Meet new and existing project partners at the largest gathering of European solar investors and lenders.
23 February 2022
Held annually since 2016, the Energy Storage Summit Europe is the place to be for senior stakeholders in the European storage industry. Designed to accelerate deployment of storage, we examine evolving chemistries, business models, project design, revenue stacks and use cases for storage. The 2022 edition will include exclusive content around longer duration solutions, energy strategies for wide-scale deployment of EVs and "EnTech", the event which sits at the intersection of digitisation, decentralisation and decarbonation of the power system. Come to meet TSOs, DSOs, Utilities, Developers, Investors and Lenders and leave with new contacts, partners and a wealth of information.
7 March 2022
Take your chance to join the most powerful platform in the MENA region. Middle East Energy (MEE), Intersolar, and ees, the leading energy exhibitions are joining hands to co-deliver an outstanding renewables and energy storage event at Middle East Energy 2021. Renewables and energy storage at MEE is the largest gathering of solar and renewable energy industry professionals in the Middle East & Africa, offering the most effective trade focused platform to international manufacturers and distributors looking to meet regional buyers.

Read Next

December 1, 2021
Major US bank Wells Fargo has closed its maiden tax equity investment into a colocated solar-storage project currently under construction in New Mexico, US.
PV Tech Premium
December 1, 2021
The price of shipping containers from Asia to Europe and North America remains high but should start to come down in the new year, although the main price drops won’t occur in earnest until 2023 when new capacity is brought online. That additional capacity, however, may be offset by new International Maritime Organisation (IMO) rules to address the industry’s emissions
December 1, 2021
Enefit Green, the renewables subsidiary of Estonian state-owned utility Eesti Energia, is looking to procure up to 500MW of solar modules in the next three years.
December 1, 2021
Tech major Amazon has added a further 2GW to its committed utility-scale solar PV capacity, adding projects in the US and Europe to its renewables portfolio.
December 1, 2021
Global solar PV deployment is on track to grow by 17% this year in spite of surging commodity prices increasing manufacturing costs, according to the International Energy Agency (IEA).
December 1, 2021
The European Commission (EC) has approved the extension of Poland’s auction scheme for renewable resources that is predicted to support the creation of 9GW of renewables after it passed EU state aid rules

Subscribe to Newsletter

Upcoming Events

Solar Media Events
February 1, 2022
London, UK
Solar Media Events
February 23, 2022
London, UK
Solar Media Events
March 23, 2022
Austin, Texas, USA
Solar Media Events
March 29, 2022
Lisbon, Portugal