With water shortages threatening its hydroelectric resources, Brazil is continuing to diversify its renewable energy resources and has completed its second solar-only auction. The auction, carried out last Friday, will see 30 large-scale PV projects be developed across five Brazilian states, at prices that are comparable with other emerging PV markets.
Spains Solatio and Italys Enel Green Energy were two of the successful companies in the auction. Solatio was awarded five projects in the second auction, with five 30 MW projects, near the town Minas Gerais in the Pirapora municipality, a particular standout.
SunEdison and Renova were also winners under the auction.
Enel Green Power (EGP) said on Monday it was awarded projects with a capacity of 553 MW in the auction, totaling more than half of the total capacity under the auction. As a result, the company will build two solar projects with 103 MW and 158 MW in the state of Bahia, along with a further 292 MW of utility scale arrays, primarily in the state of Piaui.
SunEdison was awarded two projects worth 16 MW in the municipality of Bahia.
The winning projects are to be located across five municipalities: Bahia, Minas, Gerais, Tocantins, Piaui and Paraiba. Bahia in particular will see a great deal of activity, with 12 projects worth 325 MW to be developed. Piaui and Minas Gerais, will both see a lot of development, as indicated earlier, with the latter seeing 150 MW installed across five projects. Paraiba is set to be the fourth most active state under the auction, with three projects worth 84 MW to be installed.
The first Brazilian solar-only tender saw 31 projects selected for around 890 MW of PV generating capacity. Previously solar had competed against other renewable sources under the countrys renewable energy program and were often out-competed by wind projects on price.
11 GW of PV projects were qualified by administrators for Brazils second solar auction, according to the countrys Power Research Company (EPE), although many were not able to achieve competitive prices under the auction.
Speaking to pv magazine last week, GTM Researchs Adam James noted that approval under the auction process does not automatically result in a project being realized.
The projects that clear in the auction will still need to overcome some barriers to development, especially currency risk with power purchase agreements signed in Real and high taxes on PV equipment, said GTM Researchs James.
Intersolar South America gets underway tomorrow in Sao Paolo. pv magazine will be reporting from the trade show floor. Click here for full coverage of Latin America PV markets in Spanish.
Edited by Jonathan Gifford