Brazil postpones another power tender and lets wind back in

The tender planned for April will now be held on 16 August to allow hydro-developers additional time to obtain the environmental licenses required to compete in the event.

Power distributors have as well asked for additional of a luck to evaluate next request in the light of uncertain economic forecasts, Recharge has learned.

Just large hydropower plants and some small-hydro projects are currently qualified to participate in the next A-5.

Both of the large projects took part in tenders held in 2010 and 2011, but have from now on to win any contracts due to the social costs associated with the construction of their dams.

The Brazilian government had planned to give hydro a clear run at the next A-5 tender round in a bid to promote the energy source.

Although large hydropower plants remain the government’s priority for A-5, it does not want to risk having insufficient supply contracts in place to meet request in 2017, when any projects successful in this year's tender must come online.

That prompted the decision to reverse the original policy and open August’s bidding for 20-year contracts to wind, biomass and natural gas projects.

A second A-5 tender could be held later in 2012, depending on distributors' projections of request.

Wind projects tied up 976MW of the 1.2GW total negotiated at the December 2011 A-5 auction, which marked the debut for the wind industry in that specific tender.

Brazil’s A-3 power tender, in which projects must come on line in three years, has already been rescheduled for 28 June from 22 March because of a lack of request from distributors.

Additional request could emerge due to the cancellation of contracts before awarded to fossil-fuel power plants that are sorely behind schedule.