Insight

The conundrum of contracting thermal capacity in Brazil

Get this report

$950

You can pay by card or invoice

Contact us

Submit your details to receive further information about this report.

For details on how your data is used and stored, see our Privacy Notice.
 

- FAQs about online orders
- Find out more about subscriptions

18 June 2021

The conundrum of contracting thermal capacity in Brazil

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:

  • Document

    The conundrum of contracting thermal capacity in Brazil.pdf

    PDF 500.78 KB