Brazil’s power regulator Aneel and the Electric Energy Trading Chamber (CCEE) awarded contracts Friday for hybrid energy projects that will bring electricity to remote communities in Amazonas and Pará. According to Reuters, the systems will combine diesel plants, solar panels, and battery storage, marking a move toward cleaner and more reliable power in areas outside the national grid.
The projects require an estimated 313 million reais ($57 million) in investment. Together they will deliver about 50 megawatts (MW) of capacity, nearly triple the 18.7 MW originally demanded. Contracts start in December 2027 and last 15 years.
Renewables play a larger role
In Amazonas, Energias do Acre, part of Rovema Energia, will supply towns such as Camaruã, Novo Remanso, Cabori, Parauá, and Limoeiro. The company bid 2,729.7 reais per megawatt-hour, a 22% discount from the opening price. Rovema said renewables will provide at least 22% of output year-round, and in some months that share could climb to 40%.
In Pará, Jacareacanga will receive energy from a project run by YOU.ON and IFX Engenharia. Their hybrid system, priced at 1,593.16 reais/MWh, achieved a nearly 47% discount. YOU.ON said diesel will account for less than 30% of generation, with the focus on cutting carbon emissions.
Brazil’s Energy Research Company (EPE) explained that every diesel plant in the auction must use a biodiesel blend above the national minimum.
A first step toward sustainable supply
Most isolated systems in northern Brazil rely on costly, polluting fossil fuel plants. Consumers nationwide subsidize those generators through their electricity bills. For the first time, the government required bidders to include at least 22% renewable energy or natural gas.
The Ministry of Mines and Energy pulled one planned lot for Amazonas due to uncertainty about future gas supplies. Energy Minister Alexandre Silveira said the government will relaunch it once officials secure a clearer price outlook, stressing that the goal is to expand renewables and reduce costs for households.