Wind sector shows strength in Brazil auction

Brazil’s government auctions for power projects have indicated a very strong showing for wind power.

Wind projects won 39 per cent of the total capacity contracted, offering an average price of $62.91 per MWh. This was not only below the auction’s overall average of $64.48/MWh, but also below the average price for natural gas projects of $65.23/MWh.

Government leaders are keen to promote wind power as an alternative to hydropower. Mauricio Tolmasquim, head of the energy research group EPE, said: “Before you had a situation in which wind power always needed someone holding its hand. Now wind power is strong enough that it can scare the big players.”

Wind power won 44 projects in the auction, offering 1067 MW, compared to two natural gas projects offering 1029 MW. One hydropower project and a number of biomass projects using bagasse leftover from sugar and ethanol production also won in the auction.

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