NewEnergyNews: BUDDING BRAZIL WIND HITS PRICE CEILING

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    Friday, August 02, 2013

    BUDDING BRAZIL WIND HITS PRICE CEILING

    Brazil Lowers Wind-Energy Prices by 20 Percent in August Auction

    Stephan Nielsen, July 23, 2013 (Bloomberg News)

    “The Brazilian government lowered the maximum price developers may sell energy by 20 percent in next month’s auction for new wind farms…Developers that win contracts in the so-called reserve energy auction won’t be allowed to charge more than 117 reais ($52.70) a megawatt-hour…A similar event in 2011, which included biomass plants, had a top price of 146 reais…Developers expected a maximum price of at least 125 reais after the government required turbine makers to source more of their parts locally…High inflation and the declining real makes it more expensive for turbine makers to import components, which also led to expectations for a higher ceiling price…” click here for more

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