Brazil Will Host Two Auctions In December, The Second Without Solar

- Aug 11, 2017 -

China's energy storage network (MME) has announced that it will host two energy auctions in December, called Leilao DE Energia Nova "a-4" and Leilao DE Energia Nova "a-6".

At the a-4 auction, the government will sign A 30-year agreement with hydropower projects to buy electricity from wind, solar and biomass projects for 20 years.Wind and solar projects will sell electricity under the ACR power monitoring mechanism to ensure that energy distributors can meet the electricity needs of their respective monopolies.The project at this auction must be powered by January 2021.

The subsequent a-6 auctions, which are only open to wind, biomass, hydro, coal and gas-fired combined cycle power stations, must start to power from 2023.

MME also said it would hold A similar auction with a-4 in the first quarter of 2018, although it did not disclose the range of energy auctions.An auction of the same type of a-6 will be held in 2018, with an unspecified date.

The inclusion of solar energy in the a-4 auction, which will be held in December, is good news for Brazil's solar market, which has been rumored to be no longer holding an energy auction this year.The auction that Brazil had planned to hold in July 2016 had been delayed by December and was cancelled at the last minute.On the other hand, Brazil fell into a deep recession in 2015 and 2016.Brazil's federal energy development corporation (EPE), said to cancel 2016 power auction is mainly given expectations of electricity demand in 2019-2016 auction items must be launched in 2019, but I'm afraid that when electricity demand would fall.

Brazilian photovoltaic association AB Solar has issued A statement urging MME to include Solar energy in the a-6 auction.President of AB Solar, Rodrigo Sauaia, had previously revealed that, despite the negative rumours, the 2017 auction will be held as scheduled (including Solar).He said it was unfair to exclude solar from the a-6 auction, especially if solar energy was already competitive, A step backward.

The a-4 auction is Brazil's fourth national auction of solar energy.About 3GW of large solar projects were allocated at EPE's first three auctions.According to AB Solar, some 850MW will be operational by the end of 2017.