Brazil wind energy expected to grow by 2 GW

Investors have already registered interest for the first auction, which will take place on 29 April and requires energy generation to begin within five years — by 2021.

The second auction, announced in March, is scheduled for 28 October, and generation must start within three years, by 2019.

In April’s A-5 auction, 864 wind power projects have been registered, accounting for 21.2GW of the 47.6GW registered.

Wind power generation will have a capped price of BRL 223/MWh ($63.90/MWh), and will be competing directly with hydro, small hydro and thermal (natural gas, coal, biomass and biogas).

Investors had been seeking a capped price of BRL 240/MWh from the government, to cover exchange rate, equipment cost and the risk associated with the unstable situation of the country.

The capped price means that profit is not impossible, but margins will be lower, according to the industry.