"There will be no auction. The statement of distributors was not encouraging for this year", said the executive president of the Brazilian Association of Wind Energy (ABEEólica), Élbia Gannoum, during the 2020 edition of Brazil WindPower. Due to the absence of a contracting auction due to exceptional measures of the Ministry of Mines and Energy, due to the covid-19 pandemic, the country's plants sold electricity only to the free market.
In 2020, many companies were overcontracted, with too much energy, because of the reduction in consumption with the pandemic. Thus, the Ministry of Mines and Energy (MME) foresees the holding of only one auction, the A-1, in 2020.
For 2021, the expectation is for an acceleration with the resumption of new energy auctions. "If we have an economy growth of 2.5% we can have an auction and expect something between 1 GW and 2 GW of contracting in the regulated market (of distributors), in addition to 2 GW to 3 GW of the free market," said Élbia. "By these accounts, we can reach 4 GW, a higher number than the EPE (Energy Planning Company)," he explained.