The Brazilian Ministry of Energy and Mines announced that the construction licenses for 1,572 MW of power projects secured during the August 2018 renewables auction (Leilão de Energia Nova A-6) have been signed. 53 projects have been approved in total, out of which 44 wind parks, 7 hydropower generation schemes, 1 gas-fired plant and 1 biomass project, which represent BRL6.8bn (US$1.8bn) in investments.
In total, the August 2018 auction awarded 2,100 MW of power generation capacity (of which the aforementioned 1,572 MW) for a total of 62 projects. Under the rules of the auction, the successful projects are slated for commissioning by 1 January 2024. PPAs will have a 30-year term for hydropower projects, a 25-year term for gas and biomass and a 20-year term for wind parks.
The selected projects included in particular: 48 successful wind projects with a combined capacity of 1,251 MW at an average price of BRL90.45/MWh (US$21.76/MWh). Hydropower projects have a total capacity of 458 MW awarded at a price of BRL151.68/MWh (US$36.49/MWh) for large installations and BRL193.99/MWh (US$46.67/MWh) for small hydro facilities. Gas-fired and biomass projects have respective capacities standing at 363 MW and 28 MW and received an average price of BRL179.98/MWh (US$43.3/MWh) and BRL175.59/MWh (US$42.24/MWh), respectively.