Brazil issued a bidding list for photovoltaic projects. Time is 2019-2020
The Brazilian Ministry of Mines and Energy confirmed that a series of auctions organized in the next few years will be included in the solar industry project for the first time. Later, Rodrigo Sauiaia, CEO of the trading group ABSOLAR, stressed that solar energy has the potential to provide lower prices.
The initial bidding project during the term of Brazilian President Jair Bolsonaro will be held on June 27. The tender will be signed and will begin to supply electricity in 2023.Solar energy, hydropower, wind power and biomass energy project contracts. For photovoltaic and wind power projects, these agreements last for 20 years.
It will only take time to prove whether the June auction will extend the downward trend of solar energy prices over the past few years.
According to the latest statistics released by ABSOLAR, during the first auction from 2014 to 2015, the solar feed-in tariff rose from R$ 215.1/MWh ($56.1/MWh) to R$301.8/MWh ($78.81/MWh). But then it has steadily declined.
In the second auction in 2015, the price fell to R$297.7/MWh ($77.74/MWh) for the first time, and then fell to R$145/MWh ($37.86/MWh) and 2018 in 2017. 118.8 reais / MWh ($30.82 / MWh). Last year, the price was cheaper as long as wind power was R$67.6/MWh ($17.65/MWh).
PV installed capacity doubles in one year
ABSOLAR's Sauaia estimates that the cost of PV projects planned for auction in Brazil will decline further in the next three years. According to the timetable released this month, following the bidding for the project on June 27, 2019, project bids will be held in April and September of this year in September and September of this year.
Whether solar PV will participate in various bidding projects and under what conditions will be involved in the bidding projects is still unknown, but the busy auction schedule indicates that the solar industry is in the development stage.
ABSOLAR's new data this week shows that the recent PV installed capacity has reached 2.056GW, exceeding the 1.99GW of nuclear power. The 2019 milestone is twice the number of 1 GW PV projects recorded in 2018, which will make the solar industry surpass hydropower (104 GW), biomass (14.76 GW), wind power (14.73 GW), natural gas, oil and coal. The seventh largest category in the Brazilian energy portfolio.
The association has indicated that since the first auction in 2014, 73 solar projects have been signed through auctions. ABSOLAR estimates that a large influx of projects triggered more than 10 billion reais ($2.61 billion) in private funding and invented tens of thousands of jobs.
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