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Approved By Aneel, Energy Distributors and Power Plants Will Sign Contracts in December for Auction A-1

Written by Paulo Nogueira
Published on 14/07/2020 at 04:57
Aneel energia leilão MME usinas A-1 CPG
Matrizes energéticas do Brasil
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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.

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.

The government will grant Power Purchase Agreements (PPA) with a two-year term. The contracts are scheduled to start on January 1, 2021.

See Also: Aneel Recently Announced That Two Hydroelectric Plants in Tocantins

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.

Paulo Nogueira

Graduated in Electrical Engineering from one of the country's technical education institutions, the Instituto Federal Fluminense - IFF (formerly CEFET), he worked for several years in the offshore oil and gas, energy, and construction sectors. Today, with over 8,000 publications in online magazines and blogs on the energy sector, the focus is to provide real-time information on the Brazilian job market, macro and microeconomics, and entrepreneurship. For questions, suggestions, and corrections, please contact us at informe@clickpetroleoegas.com.br. Please note that we do not accept resumes at this contact.

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