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Renewable energy auction in Brazil next December

Renewable energy auction in Brazil next December

The Ministry of Mines and Energy (MME) has convened a renewable energy auction in Brazil to be held in December 2017 and has announced that it will carry out another auction in 2018. In 2015, the country signed an international commitment at COP 21 to increase by 33% the use of renewable sources and hydroelectric energy by 2030.

In the new energy auction “A-4” of 2017, energy trading contracts will be negotiated in the regulated environment (CCEAR), starting delivery on January 1, 2021, in the modality of quantity for hydroelectric plants (provisioning of thirty years) and in the modality of availability for biomass-based thermoelectric plants and wind and photovoltaic plants (supply of twenty years).

The contract envisaged for the latter will be governed by a new accounting rule, with the aim of encouraging a more efficient contracting, bringing the realities of the physical and commercial world closer to the market, which is a new feature of this call, Brazilian news agency Ambiente Energía explains.

Renewable Energy in Brazil

In 2015, Brazil signed an international commitment at COP 21 to increase the use of renewable sources and hydroelectric energy by 33% by 2030. Specifically, the increase in the share of renewable energy for electricity supply should be at least 23% that year, in particular by increasing the share of wind, biomass and solar.

Although Brazil’s main source of energy is production with small and large hydraulics, it has positioned itself as the fifth country in the world with the highest installed wind capacity, according to a ranking published by the Global Wind Energy Council (GWEC), and with an expansion of 2,014 megawatts of wind in 2016, according to Government´s website Portal Brasil.

5,000 micro and small generation connections

Furthermore, in Energy News we reported on 28 September that Brazil exceeded the 5,000 connections of micro and small energy generation which last August reached 5,040 while in September of last year they only accounted to 1,148. In total, they represent an installed capacity of 47,934 kW. Most are solar.

The source most used by Brazilian generators-consumers was solar with 4,955 connections, followed by wind power with 39 installations. The state with the largest number of micro and small generators is Minas Gerais (1,226 connections), followed by Sao Paulo (711) and Rio Grande do Sul (564), according to Aneel, the Brazilian National Electricity Agency. 

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Madcom