They account for 65% of a total of 29.2GW of projects registered, including thermal and hydroelectric technologies.

In total, 577 wind and 179 solar PV projects were approved. Those that offer the lowest per MWh price will win 20-year power purchase agreements (PPAs) starting in 2019, which is when the projects have to be completed.

The cap price for wind and solar was set at R$137/MWh ($53.1/MWh). Industry analysts consider the price for wind to be reasonable. For solar, they see it as too low, and do not expect contracts to be signed.

Nevertheless, the lower-than-expected R$215/MWh average price for solar at October's reserve auction also had surprised analysts.

The Brazil Wind Power Association is optimistic about the upcoming auction and continues to forecast 2GW of wind capacity will be contracted this year.

In the first two auctions, 1.3GW of wind was contracted to come online in 2017.

Brazilian companies that registered wind projects for the upcoming auction include Brazil's Renova, Copel, Eletrosul, Casa dos Ventos, Bioenergy, Servtec, Atlantic Energia and Rialma.

Foreign entrants include Enel Green Power, GDF Suez's Tractebel, Ioberdrola's Força Eólica, Pacific Hydro and Enerfin.

Among companies interested in competing for contracts with solar PV technology are Renova, CPFL Renováveis, Elecnor, Solatio, Bioenergy and Enel Green Power.

The northeastern state of Bahia accounted for 209 wind projects adding up to 5.14GW. It also attracted the biggest number of solar PV projects – 107 with total potential capacity of 2.8GW.

The state of Rio Grande do Sul, in southern Brazil, had the second biggest number of wind projects at 105, with a total capacity of 2.5GW.

Traditional wind states of Rio Grande do Norte and Ceará were the home to 99 and 93 wind projects, respectively, with capacities of 2.3GW in each state.

Rio Grande do Norte attracted six solar projects with a combined capacity of 180MW, while Ceará attracted just one 30MW solar PV project.

In the up-and-coming wind district of Piauí there are 33 wind projects with total capacity of 829MW.

Pernambuco, on the other hand, attracted more solar than wind. Twenty-six projects with a total capacity of 720MW were registered there, while only five wind power projects totaling 130MW were located in the region.

Note: Amends earlier version to correct figure for capacity of PV projects authorised