With the region’s highest cap prices of R$320/MWh ($95/MWh) for PV and R$247/MWh ($74/MWh) for wind, the biggest hurdle in Brazil’s last renewables tender of 2016 will be the nation’s transmission bottleneck and a slowing demand for power.

Uncertainty therefore reigns, and projections for solar and wind to be contracted in December range from as low as 500MW to 1.5GW, or even 2GW, for each technology.

“The