Solar source leads projects at New Energy Auction A-5

According to mapping carried out by ABSOLAR, 835 solar projects were registered
21-09-21-canal-solar-Fonte solar lidera projetos no Leilão de Energia Nova A-5

According to mapping carried out by ABSOLAR (Brazilian Association of Photovoltaic Solar Energy), large solar plant projects registered in the LEN (New Energy Auction) A-5 of 2021 lead the offer available for contracting by the Federal Government, accounting for around 35% of all available power.

The entity's expectation is that photovoltaic energy will be the most contracted in the event, with the lowest average prices among all sources, helping to reduce Brazilians' electricity bills.

The auction, scheduled for September 30th, will feature the participation of solar, wind, hydroelectric and biomass thermoelectric projects. In total, 1,694 projects were registered, totaling 93.8 GW – equivalent to more than half of the current power of the Brazilian electricity matrix.

Among the highlights is the photovoltaic source, with the registration of 835 projects, totaling 32.4 GW of power. The Northeast was the region with the most registered projects, especially solar and wind, led by Bahia with 498 projects, totaling 16.9 GW.

For Anderson Garofalo, vice-president of Centralized Generation at ABSOLAR, solar is one of the best solutions for expanding Brazil's renewable electricity generation capacity, especially in this critical period of water crisis, new tariff flag and energy imports. 

“With the versatility and agility of solar technology, a large photovoltaic plant is operational in less than 18 months, from the auction to the start of electricity generation. Solar is recognized as a champion in the speed of new generation plants”, he highlighted. “Therefore, if the auctions canceled in the recent past had contracted photovoltaic energy, the current scenario would be less critical,” he added. 

Read more: Solar energy grows by 40% in the year and surpasses mineral coal

According to Rodrigo Sauaia, CEO of ABSOLAR, the critical situation of water scarcity, with high tariff adjustments in the electricity bill, reinforces the strategic role of solar as part of the solution to diversify and strengthen the electricity supply in the country, fundamental for the resumption of national economic growth.

“Large photovoltaic plants generate electricity at prices up to ten times lower than emergency fossil thermoelectric plants or electricity currently imported from neighboring countries – two of the main factors responsible for the tariff increase on consumers”, he clarified. 

“Faced with the crisis and the new flag of water scarcity, it is essential that the Federal Government accelerate solar energy in Brazil to diversify the electrical matrix and make energy cheaper for the population and productive sectors”, concluded Sauaia.

More data

In 2019, solar was the most competitive source among renewables in both LEN A-4 and A-6, with average prices below US$ 21.00/MWh. In July 2021, it repeated the feat in LEN A-3 and A-4, with the lowest average prices of the two auctions, below US$ 26.00/MWh. With this, solar consolidated its position as the cheapest renewable source in Brazil, according to ABSOLAR.

Picture of Mateus Badra
Mateus Badra
Journalist graduated from PUC-Campinas. He worked as a producer, reporter and presenter on TV Bandeirantes and Metro Jornal. Has been following the Brazilian electricity sector since 2020.

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