71 Projects Totaling 1,806 Megawatts at the End of Brazil's First Wind-Only Reserve Energy Auction

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Researched by Industrial Info Resources (Sugar Land, Texas)--The long-awaited wind energy auction was held on December 14 in Brazil. Out of 339 projects that had been granted technical approval by the Empresa de Pesquisa Energética (EPE), a bureau within the Ministry of Energy and Mines (MME), only 217 were admitted into the auction, after they submitted the required participation warranty. For additional information, see December 14, 2009, article - Brazilian Wind Energy Auction Kicks Off, Siemens Announces Manufacturing Intentions.

Of those 217 contending projects, 71 were awarded energy provision contracts starting July 1, 2012, up until June 30, 2032. The power capacity auctioned during the event amounts to 1,805.70 megawatts (MW). The state of Rio Grande do Norte comes in first, accounting for 657 MW, or 36.38% of the total. It is followed by Ceará, with 541.7 MW (29.96%); Bahia in third place, with 390 MW (21.60%); Rio Grande do Sul in fourth place, with 186 MW (10.30%); and Sergipe in fifth place, with 30 MW (1.66%).

The starting bid for this price-descending auction had been set at approximately $109 per megawatt-hour (MWh). However, the average selling price ended up being much lower than that, nearly $85/MWh. The marginal selling price was about $87/MWh, though some windfarms closed deal at as low as $75/MWh.

The investment value of all projects taking part in the auction goes up to $5.37 billion, while the value of all contracts signed represents about $11.19 billion. During the concession period, the 71 windfarms will be accountable for a 132.016 petawatt generation capacity.

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