Selected wind and power plants will supply electricity to the Brazilian utility under a 20-year PPA, starting from 2022.
The project was awarded by the Spanish government in an auction held in July. Fenosa plans to finish work on the facility by the end of this year
In the face of actual and threatened tariffs in the US and India, the world’s biggest solar manufacturers may have to set up shop in the protectionist nations in question ahead of a predicted cooling in their home market
According to data from Brazilian association ABSOLAR, Brazil currently has 27,803 solar PV systems connected to the grid, which benefit 32,924 consumer units and total more than BRL 1.9 billion (around $515 million) in accumulated investments since 2012.
The plant, which consists of a 300 kW solar installation and a 1 MW storage system, was built by local power utility Cemig in partnership with Grupo Algar. The project is located in Uberlândia, in the state of Minas Gerais, which is the Brazilian region with the highest penetration of solar and renewables – and a grid that is in a urgent need of improvement.
The auction is intended to replace the loss of the concessions for four hydropower plants, which represented 30% of the company’s power generation capacity. Selected projects will be granted a 20-year PPA.
The strong performance delivered by PV in Wednesday’s auction has demonstrated the solid market fundamentals of Brazil’s solar sector, and an improving competitive landscape. The winners of the auction included both major international players and local companies. Despite the auction’s surprising outcome, which was also driven by cheaper equipment and a stronger Real, PV technology will not be included in the upcoming A-6 auction.
Around 20 GW of solar PV projects were initially competing in the contest. PV was again the source with the largest share, accounting for around 80% of total assigned capacity. The final average price for solar was 118 BRL (US$35.2)/MWh.
The seller of the two PV projects, both to be developed in the state of Minas Gerais, is Chinese-Canadian solar module manufacturer, Canadian Solar. The €95 million transaction enables the Spanish power and gas provider to make its entry into the Brazilian solar market, after it secured its first large-scale PV projects in Spain in last summer’s auction.
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