Wind power was the largest contributor of new power capacity contracted at Brazil’s two power auctions last week. Out of a total of 3.9 GW of contracted projects, 1,922 MW went to wind power developers in the A-3 and Reserve auctions. The overall prices achieved at the auctions were considerably lower than in previous processes in 2009 and 2010, often below R$100/MWh. The new contracts bring Brazil’s pipeline for wind farms under construction up to 5,175 MW, in addition to the 1,120 MW currently in operation in 55 wind farms.
“This auction confirms the aggressive approach wind power developers take to building projects in Brazil. The tender was considered as a major test of the long-term viability of Brazilian wind power, and the outcome shows that this test was passed brilliantly,” said Ricardo Simões, President of the Brazilian Wind Energy Association ABEEólica. “Wind power is proving a competitive and commercially viable power generation option in Brazil.”
“Brazil is a sleeping giant in terms of wind power, but it is waking up,” said Steve Sawyer, GWEC’s Secretary General. “The country has a great potential, and thanks to the government’s auctions, we expect that close to 7,240 MW of wind power could be operating in Brazil by 2015.”
The results of the auctions were published in the run-up to the Brazil Windpower 2011 Exhibition and Conference, which is due to take place in Rio de Janeiro from 31 August-2 September 2011. The exhibition will feature all major international and domestic industry players present in the Brazilian market. At the conference, international wind power experts and industry representatives from Latin American countries, Europe and the USA will discuss the outcome of the auctions and their consequences for the Brazilian market.
Brazil Windpower 2011 will also see the publication of a new study entitled “An analysis of the regulatory framework for wind power generation in Brazil”, a collaboration between ABEEólica and GWEC. This study provides an in-depth analysis of the Brazilian wind energy market. It evaluates the effects of the regulatory approaches to date, analyses the market and the industry, pinpoints remaining obstacles and challenges, and provides recommendations for legislative improvements.
