Solar secures 236 MW of capacity in Brazil’s A5 auction, with average price of $0.03109/kWh


From pv magazine LatAm

The Brazilian government's A-5 auction on Thursday resulted in the allocation of 860,796 MW of projects involving different renewable sources. Solar accounted for 236.40 MW of the total across 20 projects.

With a discount of 12.63% from the ceiling price of BRL 191.00 ($35)/MWh, solar reached an average sale price of BRL 166.89/MWh. On average, 47% of the electricity will go to so-called “captive” consumers. The other 35 MW of capacity that was not contracted in the auction will be negotiated in the free market under power purchase agreements.

About 27.8 MW of wind capacity was also contracted, in addition to another 27.8 MW from the São Roque hydroelectric plant. Biomass was the source that sold the most energy in the auction. The average prices for the other sources were BRL 160.36/MWh for wind, BRL 271.26/MWh for biomass, and BRL 549.35/MWh for solid waste.

The selected projects must begin commercial operations by 2026.


FuentePotencia MWGarantía física (MW medios)MW medios contratados % de garantía física en el ACRPrecio inicial (R$/MWh)Precio medio de venta (R$/MWh)Descuento
Residuos sólidos20161275%639549,3514%

Source: CCEE

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The amount of more expensive sources such as biomass was higher than the volume of solar and wind capacity, which is a red flag for the federal government and consumers, said the Brazilian Association of Photovoltaic Solar Energy (Absolar). However, Rodrigo Sauaia, the executive president of the association, said the auction results reinforce the competitiveness of solar PV.

“However, the contracted volume was very low compared to the very high number of projects that participated in the auction,” he said. “This caused high competition among entrepreneurs, producing average prices below the reference of the photovoltaic solar source in Brazil, which demonstrates a high competitive capacity of the source, even in times of macroeconomic turbulence.”

The solar projects contracted in the procurement exercise are located in the northeastern and southeastern parts of Brazil, in the states of Ceará (96.24 MW), Piauí (60 MW) and São Paulo (80.16 MW).

Absolar has urged the federal government to increase the contracting of solar in Brazil.

“The scarcity of water further reinforces the strategic role of solar energy as part of the solution to diversify and strengthen the country's electricity supply, essential for the resumption of national economic growth,” said Anderson Garofalo Concon, Absolar's vice president of centralized generation.

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