Technical Report - Brazilian Electricity Auctions in 2017

In December 2017 the contracting of energy from new power generation plants in Brazil was resumed, with two auctions that took place under the guidelines of the Ministry of Mines and Energy (MME). On the 18th, the "A-4" auction was conducted, for supply to begin in January 2021, while on the 20th it was time for the "A-6" auction, for energy supply to begin in January 2023 . 

Such auctions are part of the electricity supply adequacy mechanisms in Brazil. They have the objective of supplying the regulated market, providing long term energy contracts for power generators, that must be backed by firm energy. 

These two auctions were relevant because they have consolidated a couple of features that had been tested in previous years, such as a preliminary phase of competition for the available capacity in the transmission grid. At the same time, they were useful for promoting, successfully, a number of new features, such as a new auction systematic (or "mechanism"), stricter qualification requirements and changes in the production obligation rules for wind and for the must-run limits of thermal power plants.  

In the report below we describe the most relevant aspects regarding the two auctions held in December 2017 for contracting energy from new power plants, the role of EPE and bring insights on how the results are likely to influence the energy planning studies in the country.

Report - Electricity Auctions


Notícias Relacionadas

EPE launches Technical Note: Wind Projects on Energy Auctions

11/03/2020 - This Technical Note presents a portrait of the wind farms registered at EPE for the various Energy Auctions that had the participation of this source, with emphasis on the most recent events, recording the developments observed over the 13 years (2007 to 2019) in which EPE carries out the technical qualification process for these projects.

EPE launches a new Technical Note regarding PV projects on Brazilian Energy auctions

27/01/2020 - The new Technical Note from the series “PV Projects on Brazilian Energy Auctions” is available, including information of the Brazilian regulated market auctions from the year 2019. The document presents a summary of the source on the auctions A-4/2019 and A-6/2019, and discusses aspects of submission and technical qualification.

Brazilian Electricity Auctions in 2018 - Presenting the results and how they influence energy planning studies

28/12/2018 - In 2018, the Ministry of Mines and Energy conducted four electricity auctions, two New Energy Auctions (“A-4” and “A-6”) and two Existing Energy Auctions (“A-1” and “A-2”). The objective of New Energy Auctions is supplying the regulated market (captive consumers), providing long term energy contracts for power generators. In the case of Existing Energy Auctions, they must contract energy from power plants already developed and in operation, mainly for short contract term.

EPE publishes Technical Note about photovoltaic projects on Energy auctions

23/10/2018 - EPE publishes a new Technical Note “Photovoltaic Projects on Energy Auctions”.

Brazilian PV market is maturing faster than expected – comment

09/04/2018 - abril 6, 2018 Emiliano Bellini - PV MAGAZINE The strong performance delivered by PV in Wednesday’s auction has demonstrated the solid market fundamentals of Brazil’s solar sector, and an improving competitive landscape. The winners of the auction included both major international players and local companies. Despite the auction’s surprising outcome, which was also driven by cheaper equipment and a stronger Real, PV technology will not be included in the upcoming A-6 auction.