Last year was the 3rd worst year of contracting new sugar-energy bioelectricity projects in regulated auctions promoted by the Federal Government, since the implementation of this type of contracting in 2005, with the commercialization of only 7 average MW in 2018.

However, now with Auction A-6, held on 10/18, the sugarcane biomass source closes the year with the sale of 76.9 average MW traded in new energy auctions: 69.5 average MW traded in Auction A-6. 6 and 7.4 average MW in the A-4 Auction that took place last June.

In Auction A-6, which took place this Friday, the biomass source managed to sell almost 70 average MW of 6 sugar-energy projects, more than the photovoltaic source, which sold a total of 59.5 average MW. The source that most traded energy was natural gas with 673.1 average MW, followed by wind with 181 average MW and small hydroelectric power plants (PCH / CGH) with 172 average MW.

Auction A-6 contracted a total of 1,155 average MW, with an average price of R $ 176.09 / MWh, going from R $ 84.39 / MWh for photovoltaic to R $ 205.78 / MWh in the average case. of SHPs / CGHs. Wind farms had an average price of R $ 98.89 / MWh, natural gas thermal plants closed with an average price of R $ 188.87 / MWh and biomass source with R $ 187.90 / MWh.

Initially, the biomass source registered 25 projects in Auction A-6/2019, but sold energy from only 6 at the end of the process. Still, today's result shows that the sugar-energy sector can respond quickly in a positive way in regulated auctions, but more perennial conditions need to be created to attract investment in bioelectricity at the federal government-sponsored events.

Among them, dedicate a demand to contract higher for the product in which the source biomass and biogas compete to stimulate the hiring of more projects, preferably establishing specific products for these sources, ideally outlined from the perspective of a dedicated sector policy. to bioelectricity.

Also, in order to initiate an effective resumption of bioelectricity investment, it would be important for the source to participate in the recently announced A-4 and A-5 Existing Energy Auctions, which will take place in March 2020. In these auctions, which will offer 15-year contracts. , only natural gas and national coal thermal power plants may participate, without the participation of solid biomass and biogas sources.

Biomass and biogas sources have already competed with coal and natural gas in auctions A-6, but were excluded from these existing auctions released on 10/16, a setback for biomass that will have almost 50% of its contracts in the regulated environment expiring until 2024 and these auctions would be an opportunity not only to invest in equipment maintenance / exchange of these biomass plants, but also to stimulate retrofit with the respective expansion of generation in these plants.

Excluding the solid biomass source and biogas in these Existing Energy Auctions, based on the dispatchability argument is not sufficient justification, because the biogas source can deliver this attribute and the sugarcane biomass generates energy considered non-intermittent and strongly complementary to the water source. , being a virtual reservoir for hydroelectric dams, especially in the Southeast / Midwest submarket. In 2019, the supply of sugarcane bioelectricity to the grid (21.5 TWh) meant saving 15% of the total energy stored in the SE / CO sub-hydroelectric reservoirs due to the greater predictability and availability of bioelectricity in the dry period.

There is still time to change the guidelines for Existing Energy Auctions, but if other such auctions occur, biomass and biogas may participate, or preferably a sequence of auctions dedicated to biomass and biogas should be delineated. , to stimulate again the resumption of investment in these sources of generation so strategic for the National Interconnected System.