Brazil Raises Power-Rate Cap on Projects for Next Auction

The maximum rate for wind energy and solar power projects has been set at 137 reais a megawatt-hour.

Brazil increased a cap on electricity rates for hydroelectric and thermal power projects to be auctioned next month in a bid to lure investment.

Bidders at the Nov. 28 auction for hydroelectric projects with as much as 50 megawatts of capacity will be allowed a maximum rate of 164 reais ($67) a megawatt-hour, up from 158 reais originally proposed, the country’s electricity regulator, known as Aneel, said by e-mail today. For thermal plants that use biomass, coal or natural gas, the cap was raised to 209 from reais 197 reais per megawatt-hour.

The auction, initially scheduled for Sept. 12, has been postponed twice to give developers additional time to submit proposals. Developers proposing about three gigawatts of capacity have applied to participate.