July 21, 2008
Brazil

Government drafting long-term energy plan, eyes wind auction

Bazil’s government is drafting a long-term plan to better adapt the energy sector to new realities, Maurício Tolmasquim, president of federal energy planning company EPE, told reporters in Rio de Janeiro.

The last plan made power production and demand forecasts through 2030.

The new plan, which is due to be ready by the end of 2009, will reflect new figures for oil and derivatives supplies, Tolmasquim said.

Other changes will include the successful auctions for the Santo Antônio and Jirau hydro plants.

“When we drew up the previous plan, we did not know the plants would be so cheap,” he said.

The Consórcio Energia Sustentável do Brasil (CESB) group led by France’s Suez earlier this year presented the winning bid of 71.37 reais (US$43.06) per MWh to build and operate Jirau.

The Madeira Energia consortium led by federal power company Furnas late last year won the Santo Antônio auction with a bid of 78.90 reais/MWh.

WIND AUCTION

The government next year plans to host the country’s first auction to sell wind power, according to EPE’s president.

Tolmasquim will present a feasibility study in 60 days to the mines and energy ministry (MME) for the wind power auction.

The government will not subsidize wind power, he said, adding the high price of producing wind power in Brazil still is an obstacle. Wind has failed to sell power in auctions that feature other power sources.

“It’s very expensive energy. There are a lot of potential investors, but the price will be a restriction,” Tolmasquim said.

By Fábio Palmigiani

Business News Americas

21 July 2008


URL to article:  https://www.wind-watch.org/news/2008/07/21/government-drafting-long-term-energy-plan-eyes-wind-auction/