Energy auctions were established in 2005 as the main procurement method for distribution companies to acquire energy, and wind and solar have now been invited to participate
The Brazilian government has launched another of its innovative energy auctions which it established some years ago as the main procurement method by which distribution companies acquire energy for their customers. This (A5) auction will be the second such event to feature solar, around 3.6GW capacity, and will be held on December 13th with a preliminary (A3) auction, also featuring solar, on November 18th.
In addition, the auction will also include 16.42GW of wind energy after the government changed the rules applying to the auctions in order to enable the Brazilian wind sector to complete. The news was welcomed by the Brazilian wind power association Abeeolica which commented that the decision will help to create jobs and increase security of supply.
The auctions began in 2005 and this latest auction has seen a record highest number of applications since then alongside a record highest number for solar PV applications. Over 929 power projects have registered to join the event, including 162 solar projects and 670 wind projects. Of the solar projects, 152 are solar PV and 10 are solar thermal. The total capacity over all participating projects is over 35GW. Successful projects are scheduled to be up and running by 2018.
Auction participants have to be licensed by Brazil’s Energy Research Company (EPE), the president of which, Mauricio Tolmasquim, described the inclusion of 35GW of capacity as bringing “great tranquillity” to the country with regard to future energy security.