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Brazil selects 3 GW of new power projects in A6 auction

The National Electric Energy Agency (ANEEL) and the Electric Energy Trading Chamber (CCEE) have selected 91 power generation projects with a combined capacity of 2.98 GW in the A6 power auction for new power projects to be commissioned within 6 years (as of January 2025). This represent a total investment of BRL11.2bn (US$2.7bn). The average price in the auction stood at BRL 176.09/MWh (US$42.56/MWh), a 39.5% discount on the ceiling price. Projects were contracted in all regions of Brazil, especially in Bahia (26), Rio Grande do Norte (14) and Santa Catarina (11).

More specifically, contracts were signed with 44 wind projects totalling 1,040 MW (480 MW of physical guarantee) at an average price of BRL 98.89/MWh (US$23.90/MWh), with 11 solar PV projects totalling 530 MW (163 MW of physical guarantee) at an average price of BRL 84.39/MWh (US$20.39/MWh). Three gas-fired power projects totalling 734 MW (696 MW guaranteed), 19 small-hydropower projects (254 MW, of which 144 MW guaranteed), and 6 biomass-fired power plants (230 MW, of which 99 MW guaranteed) also signed contracts. Contracts with hydropower projects have a 30-year term, while wind and solar projects sign 20-year contracts and thermal projects (gas-fired and biomass-fired) sign 25-year contracts.