According to a study by CELA Clean Energy Latin America, there are currently approximately 10.7 GW of solar photovoltaic and wind projects under bilateral PPAs in the Latin American country.
From pv magazine Latam
In Brazil, there are two commercial environments in the electricity market: the Regulated Contracting Environment (ACR) and the Free Contracting Environment (ACL). In the first case, distributors buy energy through auctions and the price is determined by the National Electricity Agency (Aneel). In ACL (Ambiente de Contratação Livre), consumers negotiate power purchase agreements (PPAs) directly with generators or trading companies.
According to a recent report from Sao Paulo-based consultancy CELA Clean Energy Latin America, the contracts for large-scale wind and solar projects in the ACL grew by 2.6 GW (37%) between January 2021 and February 2022.
The study is based on interviews and questionnaires carried out by the largest renewable energy generation companies in the country and provides information and analysis on 91 PPAs already signed in the free market for wind and solar photovoltaic, equivalent to an average of 2.6 GW. It reports that 34 of the contracts were for wind power and 57 for solar power.
Overall, bilateral PPAs related to wind and solar reached an installed capacity of 10.7 GW, which corresponds to 41% of the total wind and solar capacity of Brazil, which is currently of around 26.1 GW.
“In 2021 and 2022, the performance of the wind and solar photovoltaic sector in the free energy market has been consolidated, and companies are not only more prepared to develop these PPAs, but also to understand the main needs of energy consumers,” said Marilia Rabassa, director of CELA.