The Ministry of Mines and Energy (MME) published a note explaining what, after a process of "listening" and "technical evaluations," motivated the government to practically double the prices of the auctions for contracting capacity, scheduled for March 18 and 20.
According to the government, the new prices take into account “more precisely” Investments in existing plants will allow them to operate more safely throughout the contract period.
Furthermore, the Ministry of Mines and Energy (MME) continues, a "technical refinement of the cost structure" was carried out, without altering the originally established methodology, "only reallocating components previously included in the variable portion to the fixed portion to ensure greater economic consistency in the calculation."
Finally, it was argued that "evidence" from the international pricing scenario for thermoelectric power generation equipment was incorporated, such as increased capital and financing costs, supported by "technical bulletins."
In the auction aimed at contracting natural gas, coal, and hydroelectric power plants, the ceiling price for existing thermal power plants (products from 2026 to 2031) doubled from R$ 1,12 million to R$ 2,25 million per MW/year.
For new projects – referring to products from 2028 to 2031 – the adjustment was 81,25%, increasing from R$ 1,6 million to R$ 2,9 million per MW/year. In the case of hydroelectric plants (products from 2030 and 2031), prices were maintained at R$ 1,4 million per MW/year.
In the auction for contracting diesel and biodiesel-fired power plants, the adjustments were also significant. For the 2026 and 2027 products, the ceiling increased by 73,91%, from R$ 920 to R$ 1,6 million MW/year. For the 2030 product, the increase was 76,8%, with the value rising from R$ 990 to R$ 1,75 million MW/year.
“The updates to the Reserve Capacity Auction have the main objective of guaranteeing energy security for the country, ensuring effective competition in the auction, and preserving regulatory predictability, while maintaining responsibility to the consumer. We are, therefore, acting with technical responsibility, regulatory prudence, and commitment to the public interest,” he stated. Minister of Mines and Energy, Alexandre Silveira, which expects broad competition in the contests.
The original prices were released at the beginning of last week, but were met with strong dissatisfaction from the market, which considered the values insufficient to make new thermoelectric projects viable, especially given the global increase in equipment and financing costs.
You might also be interested in!
There is a lack of a clear price signal for the expansion of energy storage.
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.
