Brazil took an important step towards the expansion of its clean energy mix when it held its first wind-only power auction this Monday, December 14th. Over 1805 MW were contracted, at an average selling price of US$ 84.88/ MWh. The auction will allow the building of 71 wind power plants located in five states of the Northeastern and Southern regions of the country. In the 20 year period in which the contracts will run, the projects are expected to drive investments of over US$ 11.2 billion.

With a substantial number of enrolled projects - 339 - the auction sets the country on a path to fully harness its wind power generation potential, estimated in 143 GW, according to the latest Brazilian Wind Power Report.

“This auction shows that the price difference between wind and thermoelectric sources of energy is diminishing and today they are closer than ever. It also shows that from both an economic and environmental perspective, wind energy is an interesting option as a source that complements Brazil´s hydraulic generation”, argues Mauricio Tolmasquim, chairman of the Brazilian government’s Energy Research Company.

Mauricio Tolmasquim also points out that the contracting of wind energy in this moment reinforces Brazil´s position at the Climate Conference in Copenhagen of promoting the maintenance of the highly renewable profile of the Brazilian energy mix.

Recognizing these favorable conditions, Brazil is already showing the results of its push for the use of this clean energy source. Information from the Incentive Program for Alternative Electric Energy Sources (Proinfa) shows that wind energy has had the best growth rate since the program was created in 2002. In 2004, the country had 22 MW of installed wind energy, now Brazil has 600 MW.

Today, Brazil is home to 36 wind power plants working throughout the country. Together, they have a total power potential of 602 MW of clean energy, a still shy figure compared to the country´s wind energy potential which may grow considerably in the coming years as a result of ongoing activities.

December 15, 2009