Brazil State to Have Solar Auction as It Seeks Local Panel Plant

Sept. 17 (Bloomberg) — Brazil will hold its second
regional solar energy auction amid an effort to spur local panel
manufacturing.

Minas Gerais, in southeastern Brazil, is finalizing the
rules for the November auction, Guilherme Augusto Duarte de
Faria, superintendent of the state’s Economic Development
Secretary, said in a phone interview yesterday. The state will
set a ceiling of about 260 reais ($111) a megawatt-hour for the
auction, which will involve 15-year contracts for power.

“We want to take advantage of the improving environment
for solar energy development in Brazil,” said Faria. “The idea
is to have solar panel manufacturing plants in the state.”

Brazil gets less than 1 percent of its electricity from
solar power and the government wants to diversify its energy
mix. Pernambuco state held the nation’s first solar energy
auction last year. On Oct. 31, Brazil will hold the first
national energy auction with a specific category for
photovoltaic projects, for which developers applied to sell more
than 10 gigawatts of capacity.

Developers must buy photovoltaic modules made in Minas
Gerais for the November auction. According to Faria, five
developers have expressed interest in participating and three
panel manufacturers are in advanced talks to build a plant in
the state. Brazilian utility Cia. Energetica de Minas Gerais
will buy the solar energy.

To contact the reporter on this story:
Vanessa Dezem in Sao Paulo at
vdezem@bloomberg.net

To contact the editors responsible for this story:
Reed Landberg at
landberg@bloomberg.net
Tina Davis, Jim Efstathiou Jr.

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