Are renewables making money in Brazil? June A-4 auction results Report

Insight 02 July 2019

Get this report*

$3,000

You can pay by card or invoice

Share link

First name
Last name
Job Title
Company
Email
Telephone

Country

Message

Consent

Please keep me informed about Wood Mackenzie products, services and events.

Submit Category

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

- FAQs about online orders
- Find out more about subscriptions

*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.

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:

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:

Are renewables making money in Brazil? June A-4 auction results

PDF 975.54 KB
Are renewables making money in Brazil June A-4 auction results - calculations.xlsx

XLSX 113.31 KB