The Brazilian state of Pernambuco has approved 122.82MW of solar projects after hosting the country’s first solar-only tender auction.

Competing in the auction were 34 project bidders – six from Brazil along with others based in China, Germany, Italy and Spain.

The largest of this six successful tenders was won by Sowitec for a 30MW solar plant, closely followed by Sun Premier Holding Participações, which won a 29.75MW bid, and Kroma Comercializadora de Energia, which won 29.25MW. Concierge Cone S/A has been commissioned to build 22.82MW and Enel Green Power two 5MW projects.

The winning projects are to be built in Santa Maria da Boa Vista, Flores, Cabo de Santo Agostinho, Joaquim Nabucco and two in Tacaratu.

According to Pernambuco government, the solar auction attracted BRL597 million (US$253 million) in investments.

The successful bidders will be paid an average of BRL0.229 per kWh over a 20-year contract. The winning projects have to be installed within 18 months and are expected to generate thousands of construction jobs.

The governor of Pernambuco, Eduardo Campos, said: “It is vital that we make this kind of investment, which can consolidate a cluster of solar energy here. This auction points to an investment policy that values ​​solar energy and renewable energy in the country, helping the sustainable development of Brazil.”

Frost & Sullivan energy and environmental research analyst Vinicius Vargas told PV Tech further state level auctions were likely in Brazil in 2014, rather than national-level auctions. No solar projects were successful Brazils’ recent national A-3 and A-5 energy auctions due to PV’s relatively high cost compared to other forms of generation.

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