The Brazilian National Electric Energy Agency has announced that its A-5 Power Generation Auction resulted in 42 new electricity generation projects with a total installed capacity of 1.2115 GW to meet the projected demand of distribution companies in 2016. Of the 42 total contracted projects, 39 are wind farms, totaling 976.5 MW, which represents 81% of the total power traded in the auction.
The average price per megawatt-hour was approximately equivalent to U.S.$55/MWh, which included an average discount of 8.77%. According to Brazil's Energy Research Company (EPE), the auction fully met the demand of energy distribution companies.
New wind power plants will be installed in the states of Bahia, Ceara, Goias, Maranhao, Rio Grande do Norte, Rio Grande do Sul, Santa Catarina and Sao Paulo, with a total projected investment of approximately U.S.$2.3 billion.
According to EPE, Brazil's wind energy potential is estimated to be 143 GW, with the ability to reach 300 GW with the use of modern generators. Between 2009 and 2010, the country's wind power generation increased by 50.5% and currently accounts for 0.4% of the total electricity produced in Brazil.