Brazil allocates 23.5 MW of solar in latest renewables auction

The Brazilian energy agency has allocated 176.8 MW of renewable energy capacity in the country’s A-5 auction of 2022. The agency awarded 23.5 MW of solar capacity, at a price of BRL 0.176 ($0.033)/kWh.

Contracts for solar and wind were closed for a 15-year duration, with supply starting in 2027. The two sources were grouped in the auction, with a ceiling price of BRL 0.28/kWh. Wind contracted 51.8 MW, at BRL 0.171/kWh on average.

Only two distributors contracted energy in the auction – Cemig and Celpa.

In the last auction in which solar projects participated, the A-4 held in May, an average of 39.8 MW was sold at an average price of BRL 0.178/kWh, with the maximum at BRL 0.225/kWh.

In August, the Ministry of Mines and Energy canceled the A-6 auction, which would have contracted energy from 2028, citing a lack of demand from energy distributors. It would have have been held jointly with the A-5 auction. Prior to the announcement, Absolar had filed a lawsuit requesting the participation of solar projects in the A-6, which was not planned.