Iberdrola’s Brazilian subsidiary Força Eolica was awarded contracts for two 37.1MW wind farms in Piauí, while French developer Voltalia won a power deal for a 21MW site in Rio Grande do Norte — both in the north-east of the country.
All projects successful in the auction must be commissioned by 2023.
The weighted average price of BRL 79.98/MWh ($20.82/MWh) marks an 11.5% drop from the BRL 90.45/MWh contracted in Brazil’s most recent tender in September 2018, in which developers were given six years to build their projects.
It was also below the auction’s BRL 151.15/MWh overall average, but more than the BRL 67.48/MWh price of solar PV awarded through the tender.
This auction was the first round of biannual tenders to be held through to 2021.
One A-4 auction, in which successful developers must build their projects within four years, and one A-6 tender — in which they must build within six years — will be held in each of the next three years.
Força Eolica and Voltalia’s wind farms were among 15 energy projects with a combined capacity of 401.6MW that were awarded contracts in the tender.
Six solar PV projects (combined capacity 203.7MW) were awarded 20-year contracts at record-low average price of BRL 67.48/MWh.
Five hydroelectric plants (81.3MW) secured 30-year deals at a BRL 198.12/MWh average, and a developer of one biomass plant (21.4MW) was awarded a 20-year contract for BRL 179.87/MWh.
Wood Mackenzie Power & Renewables’ principal analyst for Latin America and Southern Europe, Brian Gaylord, said the results for wind in the action were "within expectations".
However, he added the overall volume awarded was "terrible", with the 17.5TWh contracted being less than one-third of that secured in the A-4 auction in 2018.
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