Brazil sets solar auction price cap

Tuesday, September 30, 2014

Solar power will have a ceiling price of 262 reais (US$107)/MWh at Brazil's next reserve energy auction, sector regulator Aneel said on Tuesday.

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The October 31 bid round will include – for the first time at a Brazilian power auction – an exclusive category for solar projects.

Other sources available are wind and biomass, which have respective price caps of 144 reais/MWh and 169 reais/MWh.

Aneel said it had simplified the round by relaxing rules related to permits and deadlines.

Developers have registered 1,034 projects for the auction, including 626 wind, 400 solar and eight biomass plants. Projects must be online by 2017.

"I think [solar] developers are going to look at the conditions positively because the price is very good," Aneel director Reive Barros was quoted as saying by the Globo news portal.

Brazil's reserve energy auctions are designed to guarantee supply by providing supplementary energy to the grid.

Projects are awarded to firms and consortiums offering the lowest annual revenue from future operations.

Further information, in Portuguese, can be seen here.

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