Developers submit 33GW for Brazil power auction

Developers have registered 1,192 projects for Brazil's next reserve power auction, energy planning agency EPE said on Tuesday.

Some 33.23GW of capacity will be available at the October 28 tender offer, including 799 wind farms and 393 photovoltaic solar parks.

Bahia is the state with the highest number of proposals, boasting 242 wind projects and 97 solar plants.

Last week the government cancelled an August auction for reserve energy from new solar projects amid a supply glut.

Brazilian electricity consumption has been eroded by falling industrial activity as the country suffers its worst recession in decades.

In May, power grid operator ONS predicted average demand would fall 2.4% in 2016 to 64.472GW.

Under Brazil's reserve power auction model, the government – not distributors – buys capacity to reduce the risk of a future supply deficit.

Developers bid down the price of electricity to be sold from their plants and power purchase agreements are awarded to those making the lowest offer.