Brazil Renewable Energy Auctions
In 2004 Brazil reformed its electricity sector (adoption of Laws 10.847 and 10.848) and started utilising energy auction system to procure electricity. The procurement system was based on load forecast. Existing and new generators are allowed to participate in the auction. Short, medium and long term electricity procurement contracts are awarded through auction process.
In 2007 system was amended in order to allow technology specific auctions specially design for renewable generators. The first technology specific auction was held in 2008 procuring electricity from biomass. The first wind auction took place in 2009.
There are two types of auctions: new energy auctions and reserve energy auctions.
- New energy auctions (alternative energy auctions) contract new capacity needed to meet growing electricity demand. Contracted generators have to start delivering electricity within three (marked A-3) or five years (A-5) from the auction. Usually held once a year. Contracts are awarded for period of 20 to 30 years, depending on the technology. Hydropower plants receive contract for 30 years. Wind and biomass projects receive PPAs for period of 20 years.
- Reserve energy auctions are used to contract additional capacity on order to increase capacity reserve. This type of auction is technology specific.
Renewable electricity auctions held in Brazil | ||||
No. | Auction title and type | Date held | Technology | Awarded capacity (MW) |
1 | 1st alternative energy auction | June 2007 | Biomass | 97 |
Small hydro | 541 | |||
2 | 1st capacity auction | August 2008 | Biomass | 1284 |
3 | 2nd capacity auction | Dec 2009 | Wind | 1806 |
4 | 3rd capacity auction | 26 Aug 2010 | Small hydro | 30 |
Biomass | 648 | |||
Wind | 528 | |||
5 | 2nd alternative auction | 27 Aug 2010 | Small hydro | 101 |
Biomass | 65 | |||
Wind | 1520 | |||
6 | 12th energy auction | Aug 2011 | Wind | 1068 |
Biomass | 198 | |||
7 | 4th capacity auction | Aug 2011 | Wind | 921 |
Biomass | 297 | |||
8 | 13th energy auction | Dec 2011 | Wind | 977 |
Biomass | 100 | |||
Large hydro | 135 | |||
9 | 14th energy auction | Dec 2012 | Cancelled | |
10 | 15th energy auction | Dec 2012 | Wind | 289 |
Large hydro | 294 | |||
11 | 5th capacity auction | Aug 2013 | Wind | 1500 |
12 | 16th energy auction | Aug 2013 | Large hydro | 400 |
Small hydro | 218 | |||
Biomass | 647 | |||
13 | 17th energy auction | Nov 2013 | Wind | 867.6 |
14 | 18th energy auction | Dec 2013 | Wind | 2338 |
Small hydro | 308 | |||
Biomass | 162 | |||
Large hydro | 700 | |||
15 | 19th energy auction | June 2014 |
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16 | 6th capacity auction | Oct 2014 | Solar PV | 890 |
Wind | 769 | |||
17 | 20th energy auction | Nov 2014 | Wind | 926 |
Biomass | 611 | |||
Small hydro | 43 | |||
18 | 3rd alternative energy | April 2015 | Wind | 90 |
Biomass | 389 | |||
19 | 22nd energy auction | Aug 2015 | Biomass | pending |
Wind | ||||
Natural Gas | ||||
Small hydro | ||||
20 | 7th capacity auction | Aug 2015 | Solar PV | pending |
21 | 8th capacity auction | Nov 2015 | Solar PV | pending |
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