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The Auction Aims to Meet the Needs of Local Distributors. The MME and Aneel Confirm That the Contracts Cover the Entire Country
Endorsed by Aneel (National Electric Energy Agency) and announced by the Ministry of Mines and Energy of Brazil (MME) last Friday (10), a new energy auction is scheduled for December 4, 2020, provided there is demand from domestic energy distributors from already installed plants.
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Through a decree published in the Official Gazette, the government confirmed the Existing Energy Auction A-1. It will contract energy from all available plants in the country. The energy will be traded in Brazil’s regulated market in the form of electricity volume.
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The government will grant Power Purchase Agreements (PPA) with a two-year term. The contracts are scheduled to start on January 1, 2021.
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The A-1 auction aims to meet the needs of local distributors for the upcoming year. At the same time, it allows for the reconstruction of Brazilian distribution utilities, which helps to balance supply and demand.
The MME also stated that it will not hold the A-2 energy auction this year due to uncertainties regarding the post-pandemic energy load market. Earlier this year, the federal government postponed the schedule for six auctions set for 2020.
