Brazil Sees Less Wind Energy Applicants With Tighter Bid Rules

August 15, 2013 by  
Filed under Green Energy News

Brazil reduced the amount of wind-energy projects competing to sell electricity in an auction this
month after tightening eligibility requirements to avoid delays.

Wind-energy projects with 9,000 megawatts of combined
capacity will participate in the auction, about 24 percent less
than in last year’s bid, national energy agency Empresa de
Pesquisa Energetica said on its website today.

The government required wind-farm developers competing this
year to build projects near existing substations to avoid delays
erecting power lines, Maria Gabriela da Rocha Oliveira, a Sao
Paulo-based analyst at Bloomberg New Energy Finance, said today
in a telephone interview.

“If you don’t have access to a substation this year,
you’re not eligible,” Oliveira said.

The so-called “reserve” auction is planned for Aug. 23
and will see wind developers compete for 20-year contracts to
supply electricity, according to the statement. Companies will
bid down from an initial price of 117 reais ($50.50) a megawatt
hour. The wind farms must start producing power by Sept. 1 2015.

To contact the reporter on this story:
Stephan Nielsen in Sao Paulo at
snielsen8@bloomberg.net

To contact the editor responsible for this story:
Reed Landberg at
landberg@bloomberg.net

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