Country:Brazil
Year:2007 (last updated 2015)
Policy status:In Force
Jurisdiction:National
Date Effective:2007 (last updated 2015)
Policy Type:Economic Instruments>Market-based instruments, Regulatory Instruments
Renewable Energy Policy Targets:Multiple RE Sources, All, Multiple RE Sources, Power, Wind, Bioenergy, Biomass for power, Hydropower
Policy Sector:Electricity
Agency:The Ministry of Mines and Energy (MME)
URL:http://www.planalto.gov.br/ccivil_03/_Ato2007-2010/2007/Decreto/D6048.htm
Renewable Energy Description:

In 2004 Brazil reformed its electricity sector (adoption of Laws 10.847 and 10.848) and started utilising energy auction system to procure electricity. The procurement system was based on load forecast. Existing and new generators are allowed to participate in the auction. Short, medium and long term electricity procurement contracts are awarded through auction process.

In 2007 system was amended in order to allow technology specific auctions specially design for renewable generators. The first technology specific auction was held in 2008 procuring electricity from biomass. The first wind auction took place in 2009.

There are two types of auctions: new energy auctions and reserve energy auctions.

  • New energy auctions (alternative energy auctions) contract new capacity needed to meet growing electricity demand. Contracted generators have to start delivering electricity within three (marked A-3) or five years (A-5) from the auction. Usually held once a year. Contracts are awarded for period of 20 to 30 years, depending on the technology. Hydropower plants receive contract for 30 years. Wind and biomass projects receive PPAs for period of 20 years.
  • Reserve energy auctions are used to contract additional capacity on order to increase capacity reserve. This type of auction is technology specific.

 

Renewable electricity auctions held in Brazil

No.

Auction title and type

Date held

Technology

Awarded capacity (MW)

1

1st alternative energy auction

June 2007

Biomass

97

Small hydro

541

2

1st capacity auction

August 2008

Biomass

1284

3

2nd capacity auction

Dec 2009

Wind

1806

4

3rd capacity auction

26 Aug 2010

Small hydro

30

Biomass

648

Wind

528

5

2nd alternative auction

27 Aug 2010

Small hydro

101

Biomass

65

Wind

1520

6

12th energy auction

Aug 2011

Wind

1068

Biomass

198

7

4th capacity auction

Aug 2011

Wind

921

Biomass

297

8

13th energy auction

Dec 2011

Wind

977

Biomass

100

Large hydro

135

9

14th energy auction

Dec 2012

Cancelled

10

15th energy auction

Dec 2012

Wind

289

Large hydro

294

11

5th capacity auction

Aug 2013

Wind

1500

12

16th energy auction

Aug 2013

Large hydro

400

Small hydro

218

Biomass

647

13

17th energy auction

Nov 2013

Wind

867.6

14

18th energy auction

Dec 2013

Wind

2338

Small hydro

308

Biomass

162

Large hydro

700

15

19th energy auction

June 2014

 

 

16

6th capacity auction

Oct 2014

Solar PV

890

Wind

769

17

20th energy auction

Nov 2014

Wind

926

Biomass

611

Small hydro

43

18

3rd alternative energy

April 2015

Wind

90

Biomass

389

19

22nd energy auction

Aug 2015

Biomass

pending

Wind

Natural Gas

Small hydro

20

7th capacity auction

Aug 2015

Solar PV

pending

21

8th capacity auction

Nov 2015

Solar PV

pending

 

Related policies:Electric power auctions - Wind , Electric power auctions - Biomass

Last modified: Wed, 26 Aug 2015 16:07:10 CEST