MME opens public consultation and schedules new energy auctions for December

Competitions A-4 and A-6 will aim to contract solar, wind, hydro and thermoelectric projects
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MME abre consulta pública e marca leilões de energia nova para dezembro
Contracts offered have durations of 15 or 20 years. Photo: Freepik

O MME (Ministry of Mines and Energy) put into public consultation, this Thursday (23), the notices of the new energy auctions A-4 and A-6, scheduled to happen sequentially, in December this year.

For the competitions, the ministry proposed the participation of new hydroelectric projects, with power of up to 50 MW, in addition to solar, wind and thermoelectric plants, including expansion of existing projects and hybrid solutions.

To the loads will be to serve the distributors, with new energy generation projects. 

To the Concessionaires, including, need to inform if there is a need to purchase energy to balance their contract portfolios in the regulated market. 

You contracts offered count on durations of 15 or 20 years and has start of supply energy forecast for the day January 1, 2028 for the A-4 and January 1, 2030 for the A-6.

According to the Law 10,848/1998, the Federal Government has to contract new energy loads a few years in advance, with A-4 four years in advance and A-6 six years in advance.

According to the MME, discussions about the new competitions take place amid a scenario of structural energy oversupply in Brazil, with a strong expansion of the national generating complex through renewable sources, such as solar and wind. 

Capacity Reservation Auction 

In addition to the A-4 and A-6 auctions, O electrical sector Brazilian too waiting for another competition to take place by the MME, for contracting electrical power, which has already undergone public consultation and awaits the publication of the final guidelines.

The expectations regarding the auction, known as “capacity reserve”, is in relation to the possibility of it counting on the participation in projects involving batteries and storage systems for the first time in history. 

At the end of March, the MME minister, Alexandre Silveira, said that the Brazil intends to include batteries in the next capacity reserve auction and that the measure is already being studied by the ministry's technicians. 

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Picture of Henrique Hein
Henry 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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