Self-production projects in the Free Energy Market in 2024 maintained their leading role in long-term renewable energy contracts (solar and wind), driven mainly by data centers operating in Brazil, according to a study released this Tuesday (18) by CELA (Clean Energy Latin America).
According to the consultancy, the self-production modality was responsible for 30 long-term energy purchase and sale contracts signed last year, out of a total of 31 agreements concluded in the period.
In total, there were 18 solar energy contracts and 11 wind power agreements, in addition to two hybrid projects (wind and solar), equivalent to 1,7 GW of photovoltaic plants and 0,6 GW of wind power.
With the greater opening of the Free Energy Market to smaller retail consumers, the number of long-term contracts grew from one year to the next. In 2023, 23 agreements were mapped. The volume of energy traded fell from an average of 969 MW to an average of 659 MW between the periods.
This drop, according to CELA's analysis, is explained by the change in the profile of consumers entering the Free Market with greater openness and, mainly, by the recent obstacles faced by the sector, such as difficulties in approving and connecting projects to the grid, the intensification of incentive policies and greater intensification in the sale of energy in the free contracting environment.
Also according to the study, which is in its 9th edition, last year, the volume financed by financial institutions of the signed PPAs was R$3,9 billion, compared to R$5,4 billion in 2023.
For Camila Ramos, CEO of CELA, self-production projects have become, over the last three years, the main bet of large energy consumers in the free market, precisely due to their economic and financial viability combined with the guarantee of renewable supply for consumers.
The self-production modality consists of the supply of renewable energy to large consumers who can freely contract electricity from a plant built for this purpose.
“These projects have gained a large share of data centers in the country and are today the driving force behind Mercado Livre, with great , including from new entrants due to the greater opening of the ACL in the last year”, explains Camila.
According to her, other significant trends in the sector are dollar contracts, which “have become increasingly relevant in agreements signed in recent years and the emergence of self-production contracts with shorter ”, she highlighted.
CELA's full report contains 93 pages of detailed analysis of these contracts, including contract prices, energy buyers (offtakers), contract term, energy delivery profile, modulation price, contractual curtailment treatments, financing, project implementation costs, among others.
Since the first edition of the CELA report in 2017, 171 long-term wind and solar PPAs have been mapped in the Free Market, representing an installed capacity of 17,4 GW.
The total of these contracts is equivalent to 4.806 average MW, of which 2.803 average MW is solar energy, 1.945 average MW is wind energy and another 50 average MW is hybrid energy.
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