A Brazilian consortium is proposing three government auctions specifically for 500MW of solar projects each.
The Brazilian Association of Independent Power Producers (APINE), the Industry Association of Cogeneration (COGEN), and the Brazilian Electrical and Electronics Industry Association (ABINEE) are preparing to send the government a proposal for the solar only auctions.
The three 500MW auctions will be held in 2014, 2015, and 2016 – with energy being supplied for 25 years, with generation starting from 2016.
The proposal will be submitted by December, according to the executive vice president of COGEN, Leonardo Calabró.
Calabró also said a reasonable price for the auction to offer is BRL190 (US$83) to BRL200 (US$87), per MWh, as solar is not yet competitive with wind and other energy sources in Brazil. He said it is therefore unfair for solar to compete in the A-3 and A-5 energy auctions; the first national auctions open to include solar projects.
The new plan also includes two auctions for other renewable energy projects, in 2015 and 2016, which could expand to include biomass, wind and hydro.
COGEN has already secured the ‘PE Sustainable A-1’, a state solar auction in the north east state of Pernambuco in Brazil. The auction is to be held on 14 February 2014. The auction is for 20 year contracts, starting from 1 May 2015 and is part of the Sustainability Program in Productive Activity in the state of Pernambuco.
COGEN is a non profit organisation based on the successful European COGEN initiative, and ABINEE is a non profit trade association representing the electrical industry in Brazil lobbying for solar energy expansion and energy security in Brazil.
Brazil’s national agency of electric energy (ANEEL) already launched in June this year the Joint Action Plan Inova Energy, to support Brazilian companies with solar power development, as well as smart grids, electric vehicles and energy efficiency.
Brazil recently opened energy auctions to solar projects for the first time. The first A-3 auction has 2.7GW of PV contracts up for auction, and will be held on 18 November, with projects expected to be online by 2015. A record breaking 162 solar projects applied for the A-5 energy auction, to be held on 13 December.