Brazil's ANEEL Receives Requests for Authorization for Eight Solar Power Projects

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Researched by Industrial Info Resources Latin America (Cordoba, Argentina)--Brazil's Federal Energy Regulatory Agency ANEEL has received requests for authorization of eight new solar photovoltaic power projects of 30 megawatts (MW) each. Six will be in Pernambuco, one in Paraiba, and one in Goiás. These projects represent a combined investment of approximately $1.18 billion.

These eight projects add to the country's expanding solar portfolio, which is now more than 1,000 MW in generating capacity. Last year, Brazil started up its first commercial-scale photovoltaic power plant, UFV Tauá, which is in the state of Ceará and has an installed generating capacity of 1 MW.

These solar projects are intended to bring photovoltaic power generation and its related technology into the Brazilian electrical market. Most of them are waiting for the government to carry out a solar-specific Power Auction as a means to boost the interest of investors in this type of plant. Power auctions that are organized and regulated by the government guarantee power purchase agreements (PPAs) for at least 20 years, at generally higher and less variable prices.

The government has expressed interest in fostering such an event, acknowledging that what happened with the wind industry after the first public auction in 2009 could be duplicated for solar power. However, some concerns regarding the recent economic slowdown has made the government delay solar power auctions until next year.

Estimates of what the cost of this type of energy put it at between about $123 to $172 per megawatt-hour (MWh). This would make solar energy much more expensive than most common renewable sources. Advocates of this source of green generation, however, argue that the wind scenario could certainly be duplicated in this situation, making prices competitive within three to four years.

As an example, solar advocates point out that nearly 10 years ago, when the energy coming from the first windfarms was sold through the Program of Incentives to Alternative Sources of Energy (Proinfa), it was $148 per MW. In last year's public auctions, projects signing PPAs with startup in 2014 through 2016 were about $50 per MWh.

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