BRAZIL LOOKS AT SUN

Brazil May Auction Contracts for 100 Megawatts of Solar Power
Stephan Neilsen, February 1, 2012 (Bloomberg News)

"Brazil, which has only one utility- scale solar project, may auction off next year contracts to sell at least 100 megawatts of electricity produced from sunlight…[and the auction] may be the first of many…

"Brazil has organized similar auctions for wind power that attracted developers and equipment producers to the country and drove down prices. A solar auction would have a similar effect…"

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"…Auctions for solar capacity…[should be for at least] 100 megawatts…An auction for wind energy in 2009 prompted turbine makers including General Electric Co. (GE) and Gamesa Corp. Tecnologica SA (GAM) to establish factories in Brazil and made equipment less expensive in the region.

"Developers offered to buy electricity for an average of 102.18 reais ($59) a megawatt-hour in the last auction on Dec. 20…31 percent lower than the 148.39- real average in the 2009 auction…Brazil’s only utility-scale photovoltaic project, in Taua, has 1 megawatt of capacity and is owned by Rio de Janeiro-based MPX Energia SA (MPXE3)…"