Insight
Thermal power auctions in Brazil - Part I: untangling multiple winning strategies
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
Thermal power auctions are key drivers for future LNG and gas supply agreements in Brazil. In 2017, the thermal power auction mechanism was improved, increasing the possibilities for developers design creative approaches to win long-term power purchase agreements. In this insight we analyze how the auction framework works, which parameters are key to determine the competitiveness of a project, which are the possible strategies for each condition, why recent awarded projects succeeded and how market intelligence plays key role on increasing a developer's awareness.
Table of contents
- Executive Summary
- Procuring thermal power plants in Brazil: a uniquely crafted mechanism for a hydro-intensive market
- Balancing the auction input parameters is key to assure the competitiveness of a project
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Creative inflexibility declaration strategies unlock additional space for generating revenue
- Flexible projects
- Projects inflexible in the wet season
- Projects inflexible in the dry season
- Projects with constant inflexibility
- Recent auction results highlight the success of multiple strategies
- Assessing competitors’ strategies and auction conditions is vital for bidding successfully
- Amid a growing renewable penetration in the Brazilian power mix, natural gas will have an increasing complementarity role
Tables and charts
This report includes the following images and tables:
- ICB formula
- ICB scenarios for different natural gas prices and inflexibility patterns
- Recent auction results
- Assessing competitors’ ICBs through market intelligence (illustrative figures only)
What's included
This report contains:
