Wind, solar top Brazil's A-5 catalog

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Wednesday, November 19, 2014

Wind farms will comprise almost half the projects on offer at Brazil's A-5 generation auction next week, federal energy planning company EPE said Wednesday.

In a statement, EPE said 29.24GW had been registered for the November 28 round, with 14.16GW coming from wind farms.

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Solar energy is the next best represented source with 4.87GW, followed by natural gas (4.14GW), coal (3.89GW) and biomass (1.3GW).

Hydroelectric plants – which account for more than 60% of Brazil's installed capacity – total just 830MW, less than 3% of energy on offer at the round.

The northeastern state of Bahia boasts the largest number of wind (209) and solar (107) projects.

Concession contracts will be awarded to developers that accept the lowest annual revenue from commercial operations.

Under the government's A-5 auction rules, new plants must begin supply agreements by 2019.

RENEWABLES ON RISE

The A-5 auction comes as Brazil attempts to diversify its energy matrix amid an ongoing drought that has left generators reliant on back-up thermoelectric plants.

Wind is considered the country's fastest growing power source as developers capitalize on plummeting generation costs and improved credit access.

According to local power regulator Aneel, the country added 4.7GW to its wind project pipeline in 2013.

Solar power, which makes up about 0.1% of Brazil's generation park, has also seen rapid growth in 2014.

Developers committed to photovoltaic projects totaling 890MW at Brazil's first exclusive solar auction last month.

Source: EPE