Brazilian Ministry of Energy Sets Date for A-3 and Renewable Energy Auctions with 582 Projects Totalling 27,561 Megawatts

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Researched by Industrial Info Resources Latin America (Cordoba, Argentina)--Through a resolution published this week in the official gazette, Brazil's Ministry of Energy and Mines (MME) has set August 17 and 18 as the dates to hold the A-3 and the Renewable energy auctions, respectively. The events were originally planned to begin this month, but the large number of registrations and the extension of the sign-[up period for some projects caused the auctions to be postponed until August.

In May, Empresa de Pesquisa Energética (EPE) (Brasília, Brazil), a federal bureau that fosters research and development in both public and private energy sectors, issued a statement confirming that a total of 582 projects had signed up to participate at both the Renewable and the A-3 energy auctions. This was far more than initially expected by organizers, and it required additional time for EPE to process all project submissions and release its technical assessment of viability, which is necessary for projects to be included in the auctions.

In the Renewable Energy Auction, energy purchasing contracts will be 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 and startup of the projects must be completed by July 1, 2014.

The ministerial resolution also provides that all projects tendered or negotiated at the A-3 Energy Auction must be ready to produce electricity no later than March 1, 2014, rather than the previous date of January 1, 2014. The A-3 Energy Auction will include new power projects that are fueled either by water (hydro), wind, biomass or natural gas.

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

Thermo projects also account for 81 biomass-fueled registrations, or 4,580 MW. There will be 41 small hydro projects with a total capacity of 725 MW and a 450-MW plant expansion coming from the Jirau hydro project upgrade.

For additional information on the 2011 Reserve and A-3 Energy Auctions in Brazil, see March 7, 2011, article - Brazil's EPE Reports 582 Projects Worth 27,561 Megawatts for July's Energy Auctions.

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