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Brazil's Cemig buys wind and solar in oversubscribed tender

With over 20GW of tender-ready projects, investors are seeking non-regulated market contracts to make up for slow demand in the regulated sector

Brazilian power utility Cemig contracted 476MW of wind and solar power from projects in its second non-regulated market tender aimed at supplying renewable electricity to its retail operations.

The amount contracted was 10% of the 4.7GW of projects registered for the tender, the company said in a statement.

Brazil's utilities eye wind and solar to expand power base

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The winners will sign 19-year PPAs with Cemig starting in 2023. Cemig didn’t detail the winning projects or publish prices.

Cemig is a power group controlled by the state government of Minas Gerais, Brazil’s third most populous and industrialised state.

This is the second tender held by the company to buy renewable power as it decided not renew some large hydro concessions and outsource the construction of new power capacity.

Copel, another state-controlled power company, is also holding a tender to contract renewable power offering 15-year PPAs.

Last year, Cemig contracted around 400MW of wind and solar capacity in a similar process.

Non-regulated market contracts in Brazil are becoming increasingly important for renewable energy investors, as slow demand has reduced levels contracted in regulated market tenders.

In the last regulated market tender 203MW of solar and 95MW of wind were contracted. This compares with yearly averages of over 2GW in the 2009-2015 period, which underpinned almost all of the country’s 15GW capacity.

According to the Brazilian Wind Power Association (ABEéolica), over 3GW of wind capacity has been contracted in the non-regulated market in the past 12 months.

Most OEMs in Brazil say that over 50% of their turbine sales have been directed at the non-regulated market.

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