Average Solar Power Price in Brazilian A-6 Auction Reaches $20.52/MWH

Industry News – Wednesday, October 23, 2019

Only 530 MW of the 2.97 GW of renewable energy generation capacity contracted in the procurement exercise went to solar. Eleven solar projects were successful and their final electricity prices were far below those offered by competing technologies.

The Brazilian government awarded 20-year power purchase agreements to 11 solar projects in the A-6 energy auction held in São Paulo on Friday.

Through the procurement exercise – termed A-6 because successful projects have six years to come online – the Brazilian government allocated 2,979 MW of generation capacity, of which 530 MW was solar. Wind power projects secured the largest allocation, with 1,040 MW of generation capacity, ahead of 734 MW of gas-fired power. Hydro trailed solar, with 445 MW of capacity, and biomass projects secured 229 MW of the capacity available.

The largest four successful solar projects each had a generation capacity of 75 MW, one had a 60 MW rating, five were 30 MW in scale and the smallest was 20 MW.

The final average electricity price for solar was BRL84.39/MWh ($20.52), the lowest among the competing technologies. Wind recorded an average final bid of BRL98.89/MWh, followed by hydropower (BRL157.08), biomass (BRL187.90), gas (BRL188.87) and small hydro (BRL232.05).

Solar wins price contest

The auction’s overall average price was BRL176.09/MWh. The projects selected must be operational by January 1, 2025. (...) Read more at https://www.pv-magazine.com