Brazil raises power auction prices, promotes gas

摘要

Brazil’s electricity regulator Aneel has increased the upper price threshold for upcoming back-to-back power auctions and simplifed rules to enable the participation of natural gas-fred plants. Aneel has raised the ceiling price for gas-fred projects by 10pc to 319 reals/MWh ($98/MWh), up from R290/MWh in the most recent auction for this type of capacity in April 2016. It has scrapped a provision that participants must have long-term gas supply contracts for the duration of their power purchase agreements, and given plants the option of cutting output during part of the year — as long as they remain available to produce at a minimum of 50pc capacity — to boost the involvement of gas-fred projects.