São Paulo – Brazil already has sufficient power to grow by 7% a year up until 2014. The statement was made by the president of the Energy Research Company (EPE, in the Portuguese acronym), Maurício Tolmasquim, after the closing of the 2nd Auction of Alternative Energy Sources and the 3rd Action of Reserve Energy.
"In terms of energy, after the transactions effected, the country may grow at an annual rate of 7% up until 2014," said Tolmasquim at the head offices of the Electric Power Commercialization Chamber (CCEE), in São Paulo. The auctions, which ended late on this Thursday evening (26th), were organized by the National Electric Energy Agency (Aneel).
"We were already well supplied for the 2011-2014 period. Now, after this auction, we are doing great, there is even a large surplus, and a renewable surplus as well," said Tolmasquim.
During the two days of the auction, which began on Wednesday (25th), the average price of one megawatt/hour (MWh) was 133.56 Brazilian reals (US$ 75.9). The energy produced by cane bagasse plants (biomass) sold, on average, for 144.20 reals (US$ 81.9) per MWh, wind energy – the cheapest – sold for 130.86 reals (US$ 74.3), and energy from small hydroelectric plants sold for 141.93 reals (US$ 80.6) per MWh.
Out of all the energy traded, wind farms accounted for 70% (biomass plants accounted for 25%, and small hydroelectric plants, for 5%), which came as a surprise to the president of the EPE. "The way I see it, this auction has changed paradigms. I was surprised with the fact that wind energy, out of the so-called alternate energy sources, has proven to be the cheapest, at even lower prices than those of power from biomass and small hydroelectric plants," he said.
According to Tolmasquim, the cheapening of wind energy in the country may be explained, among other things, by the arrival of investors who were unable to expand their businesses in Europe, as a result of the 2008 crisis, and who saw Brazil as an opportunity. He also underscores the country’s natural advantage.
"One wind turbine, one single piece of equipment produces twice as much energy in Brazil as it does in Europe, so it is reasonable that the price charged here is half as much the price there. This is due to wind conditions, there are no subsidies, it is the result of a natural advantage."
In the auctions held on Wednesday and Thursday, the country acquired 2,892.2 megawatts of power in installed capacity. The business turnover at the auction was 26.9 billion reals (US$ 15.2 billion), and investment totalled 2.8 billion reals (US$ 1.5 billion).
*Translated by Gabriel Pomerancblum
