Brazilian government confirms solar will compete in June A-4 auction

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Brazil’s Ministry of Energy and Mines (MEM) has published in the country’s official journal the guidelines for the A-4 Auction for the purchase of electricity from new power plants planned for Jun. 27, 2019.

In the document, the MEM said that this year’s A-4 auction will admit only renewable energy sources, including solar, wind, biomass and hydropower. Thermal power, which had a minimal share in last year’s auction of the same kind, was this time left out of the contest. The document, however, will be in public consultation for a period of 10 days, during which interested parties may submit suggestions for improvement.

The upcoming auction will also be open to projects that participated in last year’s A-6 auction, from which solar was excluded, and A-4 auction, in which solar had the largest share with around 800 MW of assigned capacity.

Power projects selected in the auction will have to begin delivering power on Jan. 1, 2023.

June’s A-4 auction is part of a three-year energy auction plan unveiled by the MEM last week. The plan included six “new energy” auctions – which could include solar – for which the MEM has scheduled two auctions per year: an A-4 auction for power supply to begin four years after the exercise, and a six-year A-6 auction. The A-4 auctions will be held on June 27; April 23 next year; and April 29, 2021. The A-6 auction dates are September 26; September 24 next year; and September 30, 2021.

It is still unclear if solar will be admitted to the A-6 auctions.