Insight
Are renewables making money in Brazil? June A-4 auction results
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
On 28 June, Brazil’s Chamber of Energy of Commercialization (CCEE) held the A-4 auction for the regulated power market. The demand for this auction was surprisingly low at only 81.1 MW. But more surprising were the bid prices, setting a global record low for solar (US$17/MWh) and a second lowest price in the world for wind (US$21/MWh). Such low prices challenge the economics of renewables developers, but it is also clear evidence that they will rely on the wholesale market complemented by a merchant strategy. Read this insight for detailed analysis on: • The economics of the merchant strategy complementing these PPAs. • The details of this auction and how it compares with recent auctions internationally. • The internal return of these projects.
Table of contents
- Hydro offer
- Thermal offer
- Wind offer
- Solar offer
- Are these projects making money?
- Will this commercial strategy be used for future renewables auctions?
Tables and charts
This report includes the following images and tables:
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Historical awarded prices for wind projects in Brazil and international benchmarkHistorical awarded prices for solar projects in Brazil and international benchmarkPrice comparisonIRR estimated for winning projects
What's included
This report contains:
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