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Politics & Regulation

Government evaluates resumption of reserve energy auctions

Information was released by Alexandre Silveira, MME minister, during a visit to Ceará

Energy reserve auction is a major demand for the sector, said Silveira. Photo: Freepik

O Federal government reported that EPE (Energy research company) will do calculations to verify the existence of demand for the return of reserve energy auctions in Brazil.

A statement was made by the MME minister (Ministry of Mines and Energy), Alexandre Silveira, during a visit to wind component manufacturers Aeris and Vestas, in Aquiraz (CE).

O The last event of its kind was held in 2016, having been specific to PCHs (Small Hydroelectric Power Plants). 

Between 2009 and 2015, were made reserve energy auctions to aim to help encourage some sources.

No reserve energy auction, The Federal Government is the one who defines the volume of energy to be contracted, unlike regulated competitions where demand arises from declarations from distributors. 

In 2016 the cancellation of reserve energy auctions occurred because the Federal Government understood that, at that moment, an oversupply scenario was already emerging in the country of energy at distributors.

Yet, according to Silveira, with the installation increasing number of systems distributed generation and consumers migrating in bulk for the Free Energy Market, situation has changed. 

“The energy reserve auction, which is a major demand in the sector, depends on demand and we are calculating this demand, the energy planning company, EPE, as soon as this demand is determined so that we do not have overcontracting at the distributors ”, said the minister. 

Capacity Reservation Auction 

With respect to Capacity reserve auction scheduled to take place later this year, Silveira stated that the Government still receiving data from ONS (National System Operator) to define the demand to be contracted.

O executive did not confirm whether the storage will or will not be part of the new tender for the first time in Brazilian history. “There are a number of technical positions missing. The ONS needs to point the way to the sources that are needed at the end,” he stated.

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Henrique Hein
About the Author
Henrique Hein

He worked at Correio Popular and Rádio Trianon. He has experience in podcast production, radio programs, interviews and reporting. Has been following the solar sector since 2020.

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