Dec. 13 (Bloomberg) -- Brazilian wind-farm developers won contracts to sell energy from 97 planned power projects with 2.3 gigawatts of capacity, the most of any generating technology in a government-organized auction.
Small hydro-power plants sold 700 megawatts of capacity and biomass plants sold 162 megawatts, according to results posted online by the Sao Paulo-based electricity trading board CCEE today. Developers didn’t win any contracts to sell electricity from solar farms.
The wind industry’s trade group had expected to sell about 1 gigawatt of capacity, according to Elbia Melo, president of Sao Paulo-based Associacao Brasileira de Energia Eolica. Developers need to contract about 2 gigawatts of wind farms a year to break even on their investments.
“That result surpassed our expectations,” Melo said in an interview. ‘With this latest auction, we got 4.7 gigawatts worth of contracts this year, more than double that benchmark.’’
The Sao Manoel dam’s 700 megawatts of power was sold for 83.5 reais ($35.8) per megawatt-hour. A judge overturned yesterday an injunction barring the project from participating in the auction because it hadn’t met some environmental requirements.
Power from a proposal to expand another hydro plant in the Amazon region, the Santo Antonio Dam, went unsold because there were no interested buyers. The project has been questioned by Energia Sustentavel do Brasil SA, which is building the Jirau Dam and has raised concerns over the capacity of the Madeira River.
--Editors: Will Wade, Robin Saponar