Brazil adds 74 projects to A-5 power auction

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Monday, September 22, 2014

Brazil's mining and energy ministry (MME) has added 74 generation projects to its A-5 power auction catalog.

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The November 28 bid round will will feature 1,115 proposals totaling 53.869GW of installed capacity, MME said in a statement on Monday.

Gas-fired thermopower and wind energy make up about 75% of the projects registered with 20.607GW and 18.760GW respectively.

Solar power is the third best represented source with 6.068GW.

Coal plants comprise 4.490GW, biomass 1.917GW, hydropower 1.261GW, small hydropower 526MW and heliothermal 240MW.

Bahia and Rio Grande do Sul are the best represented states with five projects each.

The government earlier this month postponed the auction, originally earmarked for September 30, due to hydroelectric permit delays.

PRICES

Under Brazil's power auction model, construction and operating concessions are awarded to bidders offering the lowest annual revenue.

Wind and solar plants have the A-5 auction's lowest ceiling price - 137 reais/MWh (US$60/MWh) - for contract periods of 20 years.

Hydroelectric generators have been set a 30-year supply term and maximum price of 158 reais/MWh.

Thermoelectric plants - fired by coal, biomass and combined-cycle natural gas - will have a 25-year supply period with a price cap of 197 reais/MWh.

All projects are due online by January 2019.

More details about the round, in Portuguese, can be seen here.

BNamericas will host its 11th Southern Cone Energy Summit in Lima, Peru, on November 12-13. Click here to download the agenda.