First published on the BSEC Blog, 16 March 2015
The Brazilian Government has confirmed that the first dedicated solar energy auction for 2015 will take place on 14 August. Utility scale solar developers who are successful in the auction will have two years to build their projects, after which they will be awarded a 20-year PPA (contract) for the supply of energy to the national grid.
The policy of Brazil’s Ministry of Mines & Energy involves dedicated solar energy auctions, which are intended to contribute to a diversification of the nation’s energy mix. Brazil has been suffering from severe droughts, which have depleted water levels in the hydro electricity reserves (the dominant source of electricity in Brazil) resulting in outages this year. The situation has forced Brazil to import electricity from neighbours.
Companies wishing to participate in the auction must submit their projects to the EPE (the government body which manages Brazil’s energy auctions) by 14 April 2015.