the volume of long term contracts of renewable energy in the Free Energy Market in 2023 was driven for self-production projects in Brazil, according to a study published by the consultancy CELA (Clean Energy Latin America).
Of the 23 contracts long-term agreements concluded last year, 20 were allocated to the self-production model power.
“In the last two years, we have noticed a greater investment by Mercado Livre in self-production projects, a modality that has made practically all PPAs (Power Purchase Agreement) throughout 2023, including advances in the plant leasing business model”, explains Camila Ramos, CEO of CELA.
According to the study, which is in its eighth edition, the PPAs celebrated last year are equivalent to 969 average MW contracted - a growth of 63% compared to the previous year, when 594 average MW were recorded.
This increase is especially due to the entry into the study of three important generators with data from PPAs signed in 2023, which did not participate in CELA research in previous years.
Last year, the volume financed by financial institutions from signed PPAs was R$5,4 billion, according to the CELA report.
The number of contracts saw a slight drop: from 27 agreements in 2022 to the 23 mentioned at the beginning of this report.
Since the first edition of the CELA report, in 2013, 140 long-term wind and solar energy PPAs have been mapped in the Free Energy Market, representing an installed capacity of 14,3 GW.
The accumulated amount of these contracts is equivalent to 4.147 average MW, of which 2.431 average MW are from solar energy and another 1.717 average MW from wind energy.
The CELA study also includes PPAs signed between January and December 2023, in addition to historical analyzes collected over the last seven years by the consultancy with companies.
The purpose of the study is to provide an overview of the solar and wind PPA segment in ACL, based on interviews with participants, and also provides more detailed analyzes of these PPAs, including price, term, indexation, submarket, financing, among others.
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