Nov. 3 (Bloomberg) — The Brazilian power developers
Solatio Energia and Renova Energia SA, along with Italy’s Enel
Green Power, were the biggest winners in Brazil’s first power
auction with a specific category for photovoltaic projects.
The three companies won contracts to deliver more than 70
percent of the solar capacity awarded in the event, the Sao
Paulo-based electricity trading board CCEE said in an e-mailed
A total of 1,048 megawatts of solar projects won contracts
in the Oct. 31 auction. The power plants will require about 4.15
billion reais ($1.66 billion) of investment.
“The auction was a success,” Pedro Vaquer, director of
Solatio Energia, said by e-mail today. The company received
contracts for 12 solar farms in Sao Paulo and Minas Gerais
states, with total capacity of 440 megawatts, he said.
Solatio will invest about 1.6 billion reais in Brazil solar
farms over the next three years, according to CCEE.
Companies competed for 20-year contracts to sell
electricity from projects that must go into operation by October
2017. The country is seeking to promote wider use of
photovoltaic systems as part of an effort to diversify its
energy supplies as the worst drought in eight decades reduces
power output from dams.
Enel Green Power won contracts for seven solar farms, with
254 megawatts of capacity, it said today in an e-mailed
statement. The investments in the Ituverava complex, in the
northeastern state of Bahia, will reach 1 billion reais.
With four solar projects in Bahia, Renova Energia SA won
contracts for 107 megawatts of capacity and will invest about
500 million reais, Pedro Pileggi, Renova’s chief financial
officer, said on a conference call today.
The company intends to get about 65 percent of the
financing from Brazil’s development bank, known as BNDES.
SunEdison Inc. will supply equipment.
Developers agreed to sell electricity at an average price
of 215.12 reais a megawatt-hour, after starting at a maximum
price of 262 reais. In Brazil’s energy auctions, the government
sets a ceiling price and developers bid down the price at which
they are willing to sell power. The lowest bids win contracts.
To contact the reporter on this story:
Vanessa Dezem in Sao Paulo at
To contact the editors responsible for this story:
Reed Landberg at
Will Wade, Carlos Caminada