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
Beyond costs: How operational flexibility would reshape the 2026 Brazil’s reserve capacity auction
An insight that analyses the upcoming reserve capacity auction in Brazil
$3,000
Asset Report
Tacuma (Boa Esperanza) copper mine project
A detailed production, commercial and competitive analysis of the Tucuma copper mine project.
$2,250
Asset Report
Chapada copper mine
A detailed analysis of the Chapada copper-gold mine in Brazil.
$2,250
