Project Development, Wind Power

Brazil Conducts First Wind-only Power Auction

Brazil this week held its first wind-only power auction. More than 1,800 megawatts (MW) of wind power capacity was contracted. The average selling price for electricity from these projects was US $84.88/megawatt-hour. The auction will allow for the building of 71 wind power plants located in five states of the northeastern and southern regions of the country. In the 20 year period in which the contracts will run, the projects are expected to drive investments of more than $11.2 billion.

“This auction shows that the price difference between wind and thermoelectric sources of energy is diminishing and today they are closer than ever. It also shows that from both an economic and environmental perspective, wind energy is viable option for complementing Brazil´s hydraulic generation,” said Mauricio Tolmasquim, president of the Brazilian Energy Research Company, Empresa de Pesquisa Energética (EPE).

In the period between 2004 and 2009 installed wind energy surged from around 22 MW of installed energy to the current 602 MW. Today, Brazil is home to 36 wind power plants with a total power potential of 602 MW of clean energy, a figure that is expected to increase as a result of ongoing initiatives.

With 339 enrolled projects, the auction sets the country on a path to fully harness its wind power generation potential, estimated at 143 GW, according to the latest Brazilian Wind Power Report.