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The Auctions Planned by the Government Will Be for the Acquisition of New and Existing Energy, and May Include Capacity Reserve Auctions
Bento Albuquerque, the Minister of Mines and Energy, said in an interview that the government is planning to hold eight energy auctions in 2021. The auctions will be of types A-3, A-4, A-5, and A-6. The minister also stated that seven of them will be contracts for new and existing energy, and there may still be capacity reserve auctions.
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This year, the auctions were suspended due to the Covid-19 pandemic. The Ministry of Mines and Energy stated that in 2021, it will change the guidelines for activities to remove the 50% flexibility limit on all thermal energy sources. Both flexible and completely inflexible plants can participate in bids.
The measure is part of an effective agreement between the government and Senate leaders to ensure the approval of the Natural Gas Law without altering the text from the Chamber of Commerce. The MME will also reopen the registration period.
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The A-4 and A-5 energy auctions for existing energy, scheduled for June 2021, will be for signing contracts with coal and natural gas thermoelectric plants to replace diesel plants with contracts expiring between 2023 and 2027. Power plants that switch from oil to natural gas can participate.
In January, the new guidelines for A-3 and A-4 energy auctions will be published. The event planned for April aims to obtain energy from hydropower, wind, solar, and biomass thermal projects.
New A-5 and A-6 energy sources auctions are also planned for September, to reduce the generation of hydropower, wind, solar photovoltaic, and thermal energy from urban solid waste recovery.
Thermoelectric plants using biomass, coal, and natural gas are also being planned. The government may also hold an auction in the second half of next year to acquire capacity reserves.
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