Brazil cancels power capacity tender

Brazil's mines and energy ministry has canceled an upcoming power capacity auction to develop another tender to allow for any type of generation capacity, instead of buying only thermal generation to ensure supply.

Brazil launched the new auction model to hire reserve capacity separately from generated power last year, in an effort to increase the grid's ability to supply at a moment's notice during peak demand amid growing investment in intermittent solar and wind power. The sector has largely demanded an adaptation so these tenders can allow the capacity attribute to any technology that could supply the grid, without limiting sources.

The mines and energy ministry is working on studies for such a tender, in collaboration with Brazilian energy research bureau EPE and grid operator ONS.

The ministry also canceled a tender to supply northern Brazil's isolated power grids, arguing that there is not enough demand to hold the tender this year. The ministry had canceled the A-6 power auction for long-term power purchase agreements (PPAs) because of waning demand from power distributors in August.

An A-5 tender was originally scheduled for August but was rescheduled to 14 October because of a technical issue in the auction's platform. A power reserve auction is scheduled for 30 September.

There are two additional tenders set for December — an A-1 for supply starting next year and an A-2 for supply starting in 2024.

By Rebecca Gompertz