17 Feb 2023

Brazil’s Aneel Approves 1.2+ GW of Auctioned Renewable and Gas Capacity

17 Feb 2023  by   

Brazil’s National Electric Energy Agency (Aneel) has approved the results and awarded capacity for two auctions held in 2022 totalling renewable and gas-fired capacity, The agency also approved a tender for the construction of new transmission lines across Brazil.

Aneel awarded 457.5 MW of renewable energy projects from Brazil’s A-5 tender, which was held on 14 October 2022. The approvals were granted to 20 of the 21 winning proposals for wind, solar, hydro, biomass projects and one waste-to-energy plant. The average selling price was BRL237.48/MWh (US$45.5/MWh) and solar accounted for the most capacity (200 MW). The start of supply is scheduled for 1 January 2027 and power purchase agreements (PPAs) for wind and solar have a 15-year term. The projects will require an investment of around BRL2.9bn (US$555m).

Aneel also awarded 754 MW of gas-fired capacity across three projects, which will be located in the Northern Region (Região Norte, which notably includes the states of Pará and Amazonas). The three plants are Azulão II and IV, owned by Sparta Participações, and Manaus I, owned by Global Participações em Energia. The start of supply is also scheduled for early 2027 and the projects are estimated to require an investment of BRL4.15bn (US$794m). The original tender took place on 30 September 2022.

In addition, Aneel approved the launch of a new tender for the construction of 6,184 km of 500 kV and 230 kV transmission lines, as well as substations, across the country. The auction will take place on 30 June 2023 and the required investment is estimated at BRL15.8bn (US$3bn). The projects, which will have a completion period of 36 to 66 months, will be developed across seven Brazilian states (Bahia, Espírito Santo, Minas Gerais, Pernambuco, Rio de Janeiro, São Paulo and Sergipe).

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