Brazil Renewable Energy Auctions

Source: JOIN IEA/IRENA Policy and Measures Database
Last updated: 25 August 2015

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



 

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