Brazil contracts 926 MW of wind energy in A-5 power auction

The average price for wind power was R$136/MWh ($53.41/MWh), 15% above the average of R$119.03/MWh for wind power at the comparable A-5 auction a year ago.

Wind energy developers in Brazil sold power from 36 wind farm projects with a total capacity of 926MW at today’s A-5 power auction.

The price was also just below the R$137/MWh cap set by the government.

Total investment needed to build the wind farms is projected at R$3.7bn.

Overall, 4.9GW of projects were contracted, including biomass, thermoelectric and hydro-power plants. The projects will have to start commercial operations by 1 January 2019 when the 20-year contracts will kick in. No power was sold from about 4GW of solar power projects taking part.

It means in 2014 Brazil has contracted 2.2GW of wind power, including the 551MW contracted at the A-3 auction in June and the 769MW in October’s reserve auction – both with a start-up date of 2017

The amount sold was within the 2GW to 3GW expected to be contracted this year by the Brazilian Wind Power Association (ABEEólica).

This brings Brazil’s projected wind power installed capacity to over 16GW by 2019, including some 700MW guaranteed through the non-regulated market.