Insight
The conundrum of contracting thermal capacity in Brazil
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
The 2021 round of regulated electricity auctions in Brazil will start on 25 June, with the auction to re-contract existing thermal power plants. Although 9.1 GW of gas-fired power plants are eager to secure PPAs, the auction will award only about 10% of it, based on current expectations. The country must provide fixed revenue streams to thermal power plants and keep them operating as backup amid low-demand prospects from electricity distribution companies. To address this challenge, authorities developed a new capacity mechanism, with the first capacity auction anticipated for December 2021. To provide insights on the potential volume that will be awarded in future auctions, we studied the evolution of the portfolio of contracts at each distribution company and compared it with our demand forecast.
Table of contents
- No table of contents specified
Tables and charts
No table or charts specified
What's included
This report contains:
Other reports you may be interested in
Insight
Powering Through Conflict: Brazil's power sector amid the US-China trade war (1)
This insight explores the potential impacts of the US-China trade dispute on thermal projects and renewable sources in Brazil.
$3,000
Country Report
Brazil upstream summary slides
To complement our more detailed Brazil upstream summary we provide a slide-pack of the key issues in country.
$5,700
Asset Report
Poços de Caldas alumina refinery
A detailed analysis of the Poços de Caldas alumina refinery.
$2,250
