RFP for the 2nd back-up auction is approved

Brazilian Power Agency has just approved the RFP for the 2nd back-up auction of 2015, for solar (photovoltaic projects – PV) and wind projects, to take place on November 13. The contracts will be awarded for 20-year term, starting supply on November, 2018.

The maximum (cap) price will be approximately USD 95,25/MWh for solar generation and USD 53,25/MWh for wind generation, which represents and increase of around 10% over the maximum (cap) price for the first back-up auction that took place in August 2015. According to the government such an increase is related to the current economic scenario in Brazil. With the higher cap prices the government expects to attract more bidders.

The Energy Research Company (EPE) has registered 1,379 projects (730 wind projects and 649 solar projects in 14 different states), with a total capacity to generate 38,900 MW.

The Energy, Mining and Infrastructure and Public Law group of Trench, Rossi e Watanabe Advogados will be glad to provide any clarification.

Heloísa Barroso Uelze
Henrique K. Frizzo
José Roberto B. Martins