Brazil

Although the volume has not been disclosed, selected projects in this new auction will be awarded a 19-year PPA.

Analysts have scrutinized the result of the recent A-4 auction which delivered, in theory, the world’s lowest price for solar electricity from an energy procurement exercise. The two plants in question, however, will sell 70% and 50% of their output outside the power deal signed in the auction.

Brazilian energy agency the EPE has pre-qualified 1,829 renewable power projects with a combined capacity of 100.8 GW for the procurement exercise. The A-6 auction is expected to be the largest in terms of allocated capacity and to deliver lower bids than previous rounds.

Rodrigo Sauaia, CEO of Brazilian solar energy association ABSOLAR, analyzes the chances of PV in this year’s two energy auctions in which it can compete. But it is not all about auctions, Sauaia tells pv magazine, there are 2 GW of solar projects under development for which bilateral PPAs may be signed, and hundreds of MW worth of such schemes that have already secured contracts.

Although only two of the nine projects selected in the auction are for hybrid biomass-solar power plants with some storage, seven will rely on renewable energy sources. The largest selected project, however, is a 123 MW gas power plant in the city of Boa Vista.

The tender is on June 28. This year’s procurement exercise may allocate less capacity than previous auctions, due to lower demand for contracting new projects.

After being excluded from the A-6 auction last year, solar will now be entitled to compete for 20-year PPAs alongside wind, hydro and thermal power projects in future procurements. The next auction will be held on September 26.

New PV installations under the nation’s net metering scheme grew 137% year-on-year from January to March, according to consultancy Greener, and module imports registered even greater growth, signalling activity in the distributed generation segment is increasing at a faster pace. With the regulator mooting changes to the net metering regime, however, it may reflect customers rushing to secure current tariffs.

Alsol Energías Renováveis is specializing in the installation of residential, commercial and industrial PV systems. Energisa has approximately six million clients across nine Brazilian states.

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.