Wind power insertion through energy auctions in Brazil

Porrua, Fernando; Bezerra, B.; Barroso, L.A.; Lino, P.; Ralston, Francisco; Pereira, M.V.F.

doi:10.1109/pes.2010.5589751

Cited by 19 publications

(8 citation statements)

References 4 publications

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“…In addition, numerous case studies have been published, which analyzed the experiences of different countries with tenders for renewable energy (e.g. Brazil [16][17][18][19] and South Africa [20][21][22]). Furthermore, the countryspecific experiences are at the focus of joint studies that focus on specific technologies (i.e.…”

Section: Introduction and Methodologymentioning

confidence: 99%

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International experiences with tender procedures for renewable energy – A comparison of current developments in Brazil, France, Italy and South Africa

Bayer¹,

Schäuble²,

Ferrari³

2016

Preprint

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Tenders are a fast spreading instrument for the expansion of renewable energies. However, there is a need for current analysis of experiences and results as in many countries tenders were introduced only few years ago. The objective of this study is to provide an up-to-date comparison of tender results for wind power and photovoltaics in Brazil, France, Italy and South Africa. We analyze and discuss rates of completion, market concentration and auction prices, based on data and literature research as well as expert interviews.Data on project status shows that rates of on-schedule completion are well below 100% ranging between 14% in Brazil and 41% in South Africa (wind). However, final rates of completion of 100% are possible (South Africa). With exception of France current data suggests cancellation rates of less than 5%. A systematic connection between project cancellations and the instrument of tenders could not be identified.The market share of the five largest owners differs largely between the countries and ranges from 33% (Italy) to 70% (South Africa). Despite the high level in South Africa, the significant oversubscription of tender volumes suggests that free price formation likely was not constrained. Nevertheless, small actors (<50 MW total capacity) are rare in Brazil and South Africa. For Italy their share cannot be determined due to lack of disclosure obligations on ownership structure.In all countries except Brazil auction prices have continuously fallen by 33% (Italy, wind energy) to 76% (South Africa, photovoltaics). In Brazil, the auction price increased from auction round eight to 14 from 50% to 85% of the first auction price. However, auction prices are highly dependent on factors outside of the support scheme of tenders (e.g. interest rates), so that their evolution and level are not a suitable indicator to determine whether tenders lead to minimal support costs.2

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Section: Introduction and Methodologymentioning

confidence: 99%

“…↓ Increasing compe on through appeal of Brazilian market (global financial crisis) [16,63] ↓ Overall learning effects [32,63] ↑ Stronger devalua on of real vs. USD and euro, import components become more expensive [63,111]. ↑ Prime interest rate rises [63,114].…”

Section: Causes Of Auction Price Developmentmentioning

confidence: 99%

International experiences with tender procedures for renewable energy – A comparison of current developments in Brazil, France, Italy and South Africa

Bayer¹,

Schäuble²,

Ferrari³

2016

Preprint

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“…Although the inflation rate in Brazil is at a higher level, we use this rate because the project calculation is kept in Euro and the difference should be adjusted by a devaluation of the local currency. The Brazilian power system relies on auction-based mechanisms, where an average auction winning price of 148 R$/MWh was realized in 2009 for energy from onshore wind parks [30]. Converted into Euro of 2013 with an exchange rate of 0.37 EUR/BRL and an inflation rate of 2%, it is about 60€/MWh.…”

Section: Case Study: Owp In Brazilmentioning

confidence: 99%

Offshore Wind Energy in Emerging Countries: A Decision Support System for the Assessment of Projects

Koukal

Breitner

2014

2014 47th Hawaii International Conference on System Sciences

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Energy consumption is constantly on the increase all over the world. Especially fast-growing economies in emerging countries contribute to this increase. In addition, the climate change effects of greenhouse gas emissions are becoming more and more evident. Today it has become necessary to expand renewable energies, and offshore wind energy in particular to emerging countries. We provide decision support for assessing projects and general financial conditions, respectively. To that end, research artifacts are constructed and evaluated according to the design science research (DSR) principles. A discounted cash flow (DCF) model in combination with a Monte Carlo simulation (MCS) to consider critical project risks forms the basis of our decision support system (DSS). The applicability of the DSS is evaluated with an offshore wind project inBrazil. According to Green information systems (IS), our DSS contributes to economic sustainability.

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“…The product offered was a 20-year energy contract for delivery in 2012 and had very specific characteristics that mitigate the exposition of the producer to the short-term market. The final result were 1.8 avgGW contracted [44] On the other hand, in the contract market, Gencos and consumers with loads higher than 3 MW freely negotiate short, medium and long term bilateral contracts. This environment has gain substantial attention, especially regarding to renewable energy, since the downwards movement occurred in the regulated market prices.…”

Section: Contracting Environmentsmentioning

confidence: 99%

“…On the regulatory environment, in 2009, a specific auction to contract wind power as reserve energy to the system was carried out. This auction included clauses that alleviate the producers risk in order to foster this source into the Brazilian power system [44]. In subsequent auctions, the pace of wind energy contracted grew exponentially at the cost of a severe reduction on the auctioned price, pushing out risk averse investors.…”

Section: Renewable Energy In Brazilmentioning

confidence: 99%

Hedging Renewable Energy Sales in the Brazilian Contract Market via Robust Optimization

SANTOS¹

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Wind power insertion through energy auctions in Brazil

Cited by 19 publications

References 4 publications

International experiences with tender procedures for renewable energy – A comparison of current developments in Brazil, France, Italy and South Africa

International experiences with tender procedures for renewable energy – A comparison of current developments in Brazil, France, Italy and South Africa

Offshore Wind Energy in Emerging Countries: A Decision Support System for the Assessment of Projects

Hedging Renewable Energy Sales in the Brazilian Contract Market via Robust Optimization

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