Recent survey carried out by the consultancy CELA (Clean Energy Latin America) found that the energy volume hired by wind and solar projects No. free market fell 30% between March 2022 and March 2023.
The reasons for the drop are linked to the reduction in energy prices in the long term, the increase in interest rates and the elevation of the capital for project implementation, which ended up reducing long-term energy contracting in the free environment in Brazil.
Although the contracted volume was lower in 2022, highlighted the consultancy, the market ed a greater number of contracts in the period, jumping from 15 PPAs (Power Purchase Agreement) signed in 2021 to 22 PPAs signed in 2022, which are equivalent to 516 average MW hired.
“We noticed, last year, a greater focus on the free market for energy self-production projects, a modality that made PPAs viable throughout 2022, including a new modality of self-production with the leasing of plants for the first time”, comments Camila Ramos, CEO from CELA.
In the seventh edition, the CELA study brings the PPAs signed between January and December 2022, in addition to historical analyzes collected over the last six years by the consultancy with companies, which total 111 long-term wind and solar PPAs in the ACL, equivalent to 3.093 average MW contracted. Of these, 75 are solar PPAs (2.008 average MW) and 36 are wind PPAs (1.086 average MW).
The purpose of the study, which interviewed the main renewable generating companies with information on long-term contracts between January and March 2023, is to provide an overview of the solar and wind PPAs segment in the ACL, based on interviews with participants, and also provides more detailed analyzes of these 111 PPAs, including price, term, indexation, submarket, financing, among others.
In this edition, 15 generating companies were interviewed, with the equivalent of 11,1 GW of capacity with signed PPAs. CELA emphasizes that the study is not a portrait of the market as a whole.
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