Brazil will hold three energy auctions this week.

A ANEEL (National Electric Energy Agency) and CCEE (Electric Energy Trading Chamber) will hold three auctions of existing energy next Friday (13), intended to complement the contracting of distributors to serve their consumer markets between 2027 and 2029.

The 38th, 39th, and 40th Auctions for the Purchase of Electricity from Existing Generation Projects, known as auctions A-1, A-2, and A-3, respectively, will be held. The tenders will have contracts with a supply term of two years, based on quantity, and will allow the participation of projects from any generation source.

One of the main changes is in the financial guarantee requirements for sellers. Under the new rules, the value of the additional guarantee increases from the equivalent of three months to 12 months of contractual revenue. This measure increases the need for capital or guarantee instruments on the part of the agents and may hinder the participation of trading companies that do not have their own generation.

On the other hand, sellers with their own generation capacity are exempt from providing this additional financial guarantee. This measure may encourage the participation of generators in the bidding processes, while trading companies without generation assets will have to assess the impact of the new requirements on the economic viability of their offers.

The three auctions will have distinct price ceilings and supply periods. In the 38th Auction, designated A-1, the maximum price will be R$ 290/MWh, with energy delivery between January 1, 2027, and December 31, 2028. The 39th Auction (A-2) will have a ceiling price of R$ 270/MWh and contracts with supply starting in January 2028 and ending in December 2029.

Finally, the 40th Auction (A-3) will have a maximum price of R$ 245/MWh, for supply between January 2029 and December 2030. In all cases, the contracts will be concluded on a quantity-based basis, in which the sellers assume the risks associated with the delivery of the contracted volumes, including the hydrological risk in full.

How will the auctions work?

According to the established procedure, companies interested in participating as sellers must submit a Bid Guarantee of R$ 1 per lot offered, with each lot equivalent to an average of 0,1 MW. The bidding process will be divided into two phases: Initial Stage and Continuous Stage.

In the first stage, sellers must submit a single bid, stating the number of lots they wish to sell and the respective price. Bids must respect the initial price established for each product. Lots that do not receive bids in this stage will be excluded from subsequent stages.

Before the start of the Continuous Phase, the system will calculate the amount of energy to be contracted, taking into account the distributors' needs statements and the total volume offered by the sellers. 

In the second phase, participants will be able to submit new bids for the lots initially offered, respecting the minimum price reduction rules. With each new offer, the system will restart the bidding period and update the ranking of the lots in ascending order of price.

Offers will be classified as fulfilled or unfulfilled, according to the quantity demanded for each product. The bidding will end when there are no new bids during the period established by the system.

all the content of Canal Solar is protected by copyright law, and partial or total reproduction of this site in any medium is expressly prohibited. If you are interested in collaborating or reusing part of our material, please contact us by email: redacao@canalsolar.com.br.