Auction A-5 ends with the contracting of four solar plants

O A-5 New Energy Auction, held this Friday (14), in São Paulo, ended with the contracting of 22 new generation projects, which together add up 557,45 MW of power and about R$2,95 billion in investments. 

The contest celebrated the contracting of solar, wind and hydroelectric projects in the quantity modality, and thermoelectric biomass and urban solid waste projects in the availability modality.

In addition to the already planned contracting of 11 small hydroelectric plants, classified as PCHs and CGHs, the event also registered the acquisition of four photovoltaic projects, being two in Minas Gerais and two others in Paraíba.

In these two plants, more than 80% of the electrical energy generated will be destined for distributors in the ACR (Regulated Contracting Environment). The remainder can be negotiated in the ACL (Free Contracting Environment).

Three wind energy projects were also contracted, two thermal plants powered by sugarcane bagasse biomass and one thermal plant for the use of solid urban waste.

For this auction, there was an obligation that 50% of the demand declared by the distributors be contracted in small hydroelectric plants, as provided for in law 14.182, which authorized the privatization of Eletrobras.

All projects must begin supplying energy from January 1, 2027, with contractual terms varying between 15 and 20 years, depending on the source.

In total, 176,8 average MW of energy were negotiated, at an average price of 237,48 reais per MWh, representing an average discount of 26,38%. There was no negotiation all with projects powered by mineral coal or biogas.

On the buyer side, the cemig (Minas Gerais Energy Company) was the main winner of the auction, with about 82% of the energy purchased. Celpa, a distributor in Pará controlled by Equatorial Energia, purchased the remaining 18% of the energy negotiated in the event.

The event was held by the MME (Ministry of Mines and Energy), together with the ANEEL (National Electric Energy Agency) and CCEE (Electric Energy Commercialization Chamber).

Leadership

Photovoltaic plants were the most competitive in Auction A-5, with the lowest average sales price: R$171,41 per MWh and a discount of 38,7%, compared to the ceiling price of R$280 MWh.

According to the assessment of ABSOLAR (Brazilian Association of Photovoltaic Solar Energy), although the result shows the competitiveness of the solar source, the volume of contracts is below the expectations of the sector and Brazil's own needs.

“Solar sources need to occupy more and more space in auctions, but we are on the right path. The sector is ready to contribute more competitive and clean electrical energy for the country to continue growing”, assessed Márcio Trannin, vice-president of the entity's Board of Directors.