Brazil buys 551MW wind at $58/MWh

Brazilian wind developers sold a total of 551MW of power at the A-3 auction held today at an average price of R$129.97/MWh ($57.88/MWh), a 4.5% increase from the R$124.43 average price at the 2013 auction.

The price cap this year was R$133/MWh, up from R$126/MWh last year.

Brazilian Wind Power Association Abeeólica had expected 1GW to be sold at this auction.

Maximum price for wind power at this year's auction was R$131.98/MWh, while the lowest was R$128,82/MWh, as Força Eólica I sold 54MW of power at two projects in the northeastern state of Rio Grande do Norte.

A total of 21 new wind projects sold power at today's auction, which will be ready in 2017.

The auction covers a gap in 2017 in Brazil's yearly projected increase for wind capacity, which because of low sales in 2012 only had around 260MW commissioned, compared with over 1GW for other years.

Brazil's installed capacity is now expected to top 15GW by 2018, up from previous projections of 14GW. The projections are based on new wind plants commissioned at the auction.

The only other power technology that won contracts was hydroelectricity from the Santo Antonio dam, which sold 417MW at R$121/MWh.