As part of the strategy to move away from the conventional energy dependence, Brazil will hold its first auction for wind-power projects on November 25 this year. According to sources, the first ever auction is expected to attract major players in the industry. Energy firms from both state-owned as well as private are learned to have shown interest.
The Energy and Mines Ministry in its statement said that the electric power auction was scheduled on August 25, and the lowest bidders would be deemed the winners, in accordance with the template set by the government for all energy auctions in the past.
Under the prevailing auction rules, generators put up for bid will supply electricity to the distributors. The energy firms will try to bid for electric power on Aug 25 to deliver until 2012 or beyond that time.
North-eastern parts of Brazil are identified as a region with strong winds, and a majority of country’s existing wind farms are located here. Government expressed confidence in venturing into the wind energy generation in a big way as there are many untapped areas in country that could be addressed through public-private partnership in this field.
Government stated the auctioning mechanism was aimed at increasing energy generation through wind resources as well as to guarantee a uniform price for the delivery of power laid down by the auction. It also felt that it further ensured a regular source of income for the government through the long-term contracts with the energy companies.
The government estimates that the country is capable of generating 140,000 MW of wind power, or 10 times the electricity produced by Itaipu, a hydroelectric project jointly operated with Paraguay and the world’s largest power plant of its kind. According to 2007 figures, Brazil consumed just 0.1 percent of total power expended. Details of the terms and conditions of the contract and auction formalities will be made available soon the communiqué added.