Brazil Reaches 5 GW of Signed Solar PPAs

A new CELA Clean Energy Latin America study looks at 70 power purchase agreements signed for wind and solar PV projects in Brazil.

CELA Clean Energy Latin America, a financial advisory and strategic consultancy focused on renewable energy, has just published a study on power purchase agreements signed by wind and solar companies in Brazil’s open electricity market.

The study was based on interviews and questionnaires conducted by eight of the largest renewables companies in the country. Together have more than 4.3 GW of operational renewables capacity installed in Brazil.

CELA Clean Energy Latin America analzyed 70 PPAs already signed in the free energy market (Ambiente de Contratación Libre – ACL). The total capacity is equivalent to 1.7 GW. In terms of the installed capacity of projects with energy contracted in the ACL, there are approximately 6.5 GW of installations, with solar accounting for approximately 5 GWp of the total, with 1.5 GW of wind capacity. The installed capacity that CELA Clean Energy Latin America analyzed corresponds to about 30% of the total installed operating capacity of wind and solar sources in Brazil today.

Five of the participating companies are IPPs. They are large power generators that operate the facilities with long-term objectives. Three of them are developers (companies that sell their projects at some point).

Based on CELA Clean Energy Latin America’s previous study, conducted last year, it is now clear that the volume of power contracted in the free market in Brazil has grown 2.6 times since January 2020. CELA Clean Energy Latin America’s latest study analyzes the evolution of PPA timeframes, prices, and indexation curves.

The consultancy said it has also considered the most-used contracts, such as independent energy production and self-consumption, the segmentation of off-takers, and data on the marketing and sales strategies of the companies it interviewed.

“In 2020 and 2021, the wind and solar PV sectors are much more mature, and companies are increasingly prepared to develop and negotiate these PPAs,” says Camila Ramos, the CEO of CELA Clean Energy Latin America. The study shows that the conditions for PPAs, including pricing, have evolved considerably. The financing environment has also become more competitive.


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