Brazil's EPE Reports 582 Projects Worth 27,561 Megawatts for July's Energy Auctions

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Researched by Industrial Info Resources (Sugar Land, Texas)--Brazil's Empresa de Pesquisa Energética (EPE) (Brasília, Brazil), a federal bureau that fosters research and development in public and private energy sectors, issued a statement early this week confirming that a total of 582 projects were registered for participation at both the Renewable and the A-3 energy auctions.

These projects total 27,561 megawatts (MW) and will be tendered in July this year, on a date still to be determined. The information was released after the closure of the sign-up process for natural gas-fired projects on May 19. Registration for projects fueled by other sources closed on May 4, as previously reported by Industrial Info.

In the Renewable Energy Auction, energy purchasing contracts are secured exclusively for new wind- and biomass-based generation projects. Any contract with a distributor agreed upon at this event will have a validity of 30 years; start-up of the projects must be completed by July 1, 2014.

On the other hand, all projects tendered or negotiated at the A-3 Energy Auction must be ready to produce electricity no later than January 1, 2014. The A-3 Energy Auction will include new power projects that are fueled by water (hydro), wind, biomass, or natural gas.

According to the information disclosed by EPE, at the end of the sign up process there are 30 natural gas-fired grassroot projects that are allowed to participate in both events. These projects represent an installed capacity of 10,871 MW, or 39.44% of the total megawatts to be auctioned. This figure is similar to the one that comes from the 429 wind registrations: 10,935 MW, or 39.68%.

Thermo projects also account for 81 biomass-fueled registrations, or 4,580 MW (16.62%). There will be 41 small hydro projects, with a total capacity of 725 MW (2,63%), and a 450-MW plant expansion that will come from Jirau's upgrade (1.63% of the energy output to be auctioned).

Based on the site of the projects, definitive figures show that planned gas-based capacity does not follow a distinct pattern of geographical allocation. The state of Rio de Janeiro comes in first place with four registered projects, for a total of 2,222 MW. In second place, there is the northeastern state of Pernambuco, with five projects adding up to 1,473 MW, followed by Rio Grande do Sul, with 1,467 MW coming from a single project. In the fourth place, the state of Alagoas has 1,309 MW divided between five projects, while the northern state of Maranhão comes next on the list, with three projects worth a total of 1,204 MW.

For additional information on 2011 Reserve and A-3 Energy Auctions in Brazil, view related March 7, 2011, article - Brazil to Hold Federal Auction for Power Generation Projects, and May 19, 2011, article - Brazil Holds Auctions for Power Projects Totalling 23,332 Megawatts.

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