Brazil state Pernambuco considers second solar-only auction

July 3, 2015
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The Brazilian State of Pernambuco is considering launching a second solar energy auction after a number of delays to the winning projects from its first auction, according to a local report.

In its first solar-only auction in December 2013, the state awarded six successful tenders accounting for nearly 123MW of solar projects. Eighteen months later, only one project from Enel Green Power is almost ready to start generating power. These are the combined 11MW Fontes Solar I and II plants, located in the municipality of Tacaratu. The other winning projects have until early January 2017 to come online, said Canal Energia.

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The secretary of state for energy, Eduardo Azevedo, said delays were caused by licensing, for which the state is responsible. They were also delayed a further six months over the signing of grants by the National Electric Energy Agency.

Azevedo said that with procedural issues resolved, the state now expects new projects from a second auction to be developed in a quicker timeframe than those from the initial auction.

Experience form the 2013 auction has also shown that the government can provide incentives for enterprises to give land for the implementation of new projects, which are close to grid infrastructure with cheaper connection.

The original six successful tenders were won by Sowitec (30MW), Sun Premier Holding Participações (29.75MW), Kroma Comercializadora de Energia (29.25MW) and Concierge Cone S/A (22.82MW).

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