Brazil’s only 2017 solar auction set for 18 December as energy oversupply situation approaches

MME also announced today that Brazil is expected to have an energy surplus this year for the first time since 1940. Credit: MME

Brazil’s energy agency EPE has set an 18 December date for the A-4 energy auction, which includes the potential of 20-year PPAs for wind, solar and biomass along with 30-year PPAs for hydro.

Grid-connection for winning projects is due by January 2021.

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EPE had previously announced that the A-4 auction would take place in December but did not specify an exact day.

The other power auction announced at the time, the A-6 for hydro, biomass, coal, gas and wind, will take place two days later on 20 December.

The A-4 is the only auction catering for solar energy in Brazil this year as the country deals with a drop in the expected demand for power and a fragile economy among other issues. Indeed the Ministry of Mines and Energy (MME) also announced today that Brazil is expected to have an energy surplus this year for the first time since 1940 when global energy statistics were made available.

MME said the situation was occurring due to “high growth rates in oil and natural gas production coupled with low global energy demand will provide the surplus”.

Brazil is expected to hit 1GW of solar this year.

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