Selected projects will be expected to start commercial operations on June 28, 2021. The auction is open to both conventional and renewable energy sources, as well as proposals for hybrid projects or power plants linked to storage.
There are four PV projects and all the facilities will use bifacial panels provided by the Brazilian factory of the Chinese-Canadian manufacturer.
According to Brazilian solar energy association ABSOLAR, PV project developers will be awarded “quantity contracts” in the auction to be held on June 27. The association, however, warns that changes in contract structures require adequate adaptation and correct implementation to achieve success.
Energy agency the EPE has admitted 1,581 projects with a total capacity of more than 54 GW to the procurement exercise’s initial phase.
With around 2,056 MW of operational installed capacity from large-scale PV and more than 500 MW of installed distributed-generation capacity, Brazil has now surpassed Chile to become Latin America’s second-largest solar market after Mexico. According to new statistics released by Brazilian industry association ABSOLAR, utility-scale solar currently accounts for around 1.2% of the country’s total generating capacity.
In a document published in Brazil’s official journal, the Ministry of Energy and Mines said the upcoming procurement exercise will be open to solar, wind, biomass and hydroelectric power projects.
The Ministry of Energy and Mines is planning nine energy auctions up to 2021. The plan includes two “new energy” procurements per year – A-4 and A-6 auctions – and one per year for existing power plants. It is unclear whether solar will be eligible and, if so, which auctions it would compete in, but Brazilian solar association ABSOLAR is confident PV will admitted to both.
The two companies entered a technological partnership in 2013 and three years ago the Brazilian company acquired the wind power business of its US peer.
Analysts at PV InfoLink said the number of markets open to new technologies such as half-cut and shingled panels is constantly rising. Australia, Japan, Spain, the UAE and Brazil were cited as the hottest markets for Chinese “special modules”. Total annual production in China for half-cut modules, which are set to increase their market share this year, should reach around 20 GW.
The procurement is planned for May 16 and will award 15-year PPAs to projects based on conventional and renewable energy generation. Solar could help remove the state’s reliance on power generated by a company based in crisis-torn Venezuela.
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