Insight
Are renewables making money in Brazil? June A-4 auction results
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 4 images and tables including:
- Historical awarded prices for wind projects in Brazil and international benchmark
- Historical awarded prices for solar projects in Brazil and international benchmark
- Price comparison
- IRR estimated for winning projects
What's included
This report contains:
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