SAO PAULO (Reuters) – The federal government established the amounts of physical guarantee of energy from thermoelectric power plants powered by biomass for participation in an A-4 auction, called the “New Energy Auction”, according to an ordinance published in the Official Gazette of this Wednesday.
The definition comes at a time when the government is seeking to expand the contracting of energy coming especially from sugarcane bagasse. The move had been reported by Reuters earlier this month.
The 2021 A-3 and A-4 auctions, intended for the purchase of electricity from new hydro, wind, solar photovoltaic and biomass thermal generation projects, are scheduled for July 8th.
This Wednesday’s publication by the government indicates the physical energy guarantees of 23 establishments with no Variable Unit Cost (CVU), which are not centrally dispatched, 18 of which are powered by sugarcane bagasse. The others are divided into biogas (3), palm (1) and wood chips/waste (1).
The generation CVU corresponds to the revenue received by thermal plants when called to operate. Brazil has expanded the use of this energy source amid the water crisis faced by the country.
The sugarcane bagasse-powered plants listed by the ordinance add up to a total power of 1,042 megawatts (MW). The facilities, which also have their respective monthly availability defined by the document, are located in the states of São Paulo, Minas Gerais, Alagoas, Mato Grosso do Sul, Goiás, and Mato Grosso.
“For enterprises that sell energy in the auction referred to in this ordinance, the amounts of physical energy guarantee and monthly energy availability, as well as the inflexibility contained in the annexes… will be valid from their respective dates of entry into operation commercial”, determined the ordinance, signed by the secretary of Planning and Energy Development of the Ministry of Mines and Energy, Paulo Cesar Magalhães Domingues.
“The physical energy guarantees and the monthly availability of energy… are not valid in the case of the start of commercial operation of the enterprises prior to the start date of supply defined in the CCEARs”, he added.
The complete ordinance can be accessed at: https://www.in.gov.br/en/web/dou/-/portaria-n-754-de-21-de-junho-de-2021-327661354
(By Gabriel Araujo)
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