Market development news from Brazil

A series of new rules have been introduced to the Brazilian energy market related to participation in power auctions. The Brazilian government has created a separate LER 2013 (A-2) auction exclusively for wind power operators. In addition, from April 2013 onwards a new government requirement came into force restricting participation in auction only to farms that have the possibility to connect to existing electricity system ie transmission lines must be available to distribute the electricity produced by wind energy by the time farms  become operational.

Another recent modification was made to the accounting methodology for the calculation of physical guarantee of wind projects. The idea is to increase the rigor of the criterion to calculate physical guarantee (volume of tradable power) from wind farms. According to the new methodology, the government uses P90 criterion meaning a 90% probability of the farm generating at least the declared volume of firm power (physical guarantee). This measure increases the security for the contract purchasers of energy, because it reduces the risk of production held be lower than the contracted.

Nevertheless, the Brazilian wind sector is going strong with the Brazilian government’s Decennial Energy Plan (PDE 2021) setting a goal of 16 GW of installed wind capacity to be reached by 2021, accounting for 9 % of national electricity consumption. 

New Brazilian Network for Wind Energy Innovation

The “Brazilian Network for Wind Energy Innovation’’, an innovation and research centre for exchanging knowledge and best practice, will soon open its doors. The centre will provide an online platform to enhance collaboration between different stakeholders including wind developers, companies, universities and research institutes. The new organisation also aims to enable the transfer of technology know-how by establishing a research network; a Wind Power Research and Technology Center; and a wind turbine test field.

Brazilian Wind Market Update 2012 has been released and is available on ABEEólica’s website.