Brazil caps A-3 wind at $60

Brazil's power regulator, Aneel, has set a price cap of R$133/MWh ($59.71) for wind at next month's A-3 auction.

This compares with a ceiling of R$126/MWh in the A-3 last November, when average prices came in 1.25% lower.

Aneel directors say the price for the 6 June auction is higher to take inflation into account.

Wind will compete with sources such as natural gas and biomass thermoelectric projects. Hydro projects will have a higher price, but wil not compete directly with wind for contracts. The wind supply contracts will start on 1 January 2017 and last 20 years.

Few other changes were made to the tender rules.

So far, 527 projects with a combined capacity of 16.258GW have sought preliminary registration.