Brazil to hold energy auction for non-interconnected state of Roraima on May 31

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Brazilian energy regulator ANEEL has announced that it has approved the bidding terms for a planned electricity auction for the isolated power system of Boa Vista and connected localities in the northern state of Roraima.

ANEEL said the auction will be held on May 31 at the the Chamber of Commercialization of Electric Power (CCEE) in São Paulo. It will be conducted through an electronic platform. The procurement exercise will be open to different types of technologies and fuels, including installations paired with energy storage solutions, ANEEL said.

“These guidelines seek to change the energy matrix from renewable sources, with energy storage and hybrid power plants,” the regulator added.

Projects selected in the contest will have to start commercial operations on June 28, 2021, and not January 1, 2021, as previously announced. The Brazilian government wants to grant PPAs of 15 years for winning projects.

Roraima is the only Brazilian state that is not connected to the national electricity system. Since July 2001, a large part of the state, including the city of Boa Vista, has sourced electricity from Venezuela, through a transmission system that spans both countries. The region’s current energy supplier is Venezuelan power provider Corpoelec, which has a supply contract until December 2021.

The auction is part of the Brazilian Ministry of Mines and Energy’s plan to guarantee the supply of electricity to more than 200 locations located in the northern part of the country. In March, the ministry gave distribution companies four months to submit proposals through its Empresa de Pesquisa Energética agency for isolated consumer markets over the following five years.

“Innovation makes it possible to increase the share of renewable sources in those regions, currently served mostly by diesel-fired thermoelectric plants,” the MME said at the time.