volume of renewable energy contracted in the ACL fell 30% in 2022

In this edition, 15 generating companies were interviewed, with the equivalent of 11.1 GW of capacity. Photo: Pixabay

Recent survey carried out by the consultancy CELA (Clean Energy Latin America) found that the volume of energy contracted from wind and solar projects at the free market dropped by 30% between March 2022 and March 2023.

The reasons for the drop are linked to the reduction of energy prices in the long run, the increase in interest rates and the elevation of capital for project implementationwhich 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 registered 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 is equivalent to 516 average MW hired.

“We noticed, in the last year, a greater commitment to the free market of energy self-production projects, a modality that made PPAs viable throughout 2022, including a new modality of self-production with plant leasing for the first time”, comments Camila Ramos, CEO from the CELL.

Long-term contracts on the free market between 2013 and 2022. Source: CELA

In the seventh edition, the CELA study brings the PPAs signed between January and December 2022, in addition to historical analyzes collected in the last six years by the consultancy with the companies, which add up to 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 proposal of the study, which heard between January and March 2023 the main renewable generation companies with information on long-term contracts, is to provide an overview of the solar and wind PPA segment in the ACL, based on interviews with the participants, and even brings 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 points out that the study is not a picture of the market as a whole.