Brazil Raises Power-Rate Cap on Projects for Next Auction

Brazil increased a cap on electricity rates for hydroelectric and thermal power projects to be auctioned next month in a bid to lure investment.

Bidders at the Nov. 28 auction for hydroelectric projects with as much as 50 megawatts of capacity will be allowed a maximum rate of 164 reais ($67) a megawatt-hour, up from 158 reais originally proposed, the country’s electricity regulator, known as Aneel, said by e-mail today. For thermal plants that use biomass, coal or natural gas, the cap was raised to 209 from reais 197 reais per megawatt-hour.

The auction, initially scheduled for Sept. 12, has been postponed twice to give developers additional time to submit proposals. Developers proposing about three gigawatts of capacity have applied to participate.

The maximum rate for wind and solar projects has been set at 137 reais a megawatt-hour.

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