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Brazil launches first solar auction with price ceiling of $109

Brazil launches first solar auction with price ceiling of $109

first_imgBrazil launches first solar auction with price ceiling of $109The state of Pernambuco has set a price ceiling of $109 per megawatt hour for Brazil’s first auction aimed exclusively at solar energy projects scheduled to take place on December 20. November 26, 2013 Blanca Díaz López Legal Manufacturing Markets Markets & Policy Share The government of the state of Pernambuco has rescheduled the date for Brazil’s first solar auction to December 20 and set a ceiling price of BRL 250 ($109) per megawatt hour. Pernambuco will provide fiscal incentives as part of the auction. The auction was originally scheduled to take place in February 2014.Participating in the auction are invited companies that will buy the electricity from the solar parks and firms that will sell it. The power purchase agreements (PPA) closed between them will last for 20 years and must have a price under the set ceiling price. The parks are to start operations in July 2015 or later if they fulfill a local content requirement.The auction will be open to solar projects up to 30 MW located exclusively in the state of Pernambuco and will have had to obtain technical authorization. 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