Capacity auction: Aneel approves event for December

Leilão de capacidade: Aneel aprova certame para dezembro

The capacity reserve auction is scheduled for December 21st. Understand how the event will take place, forecasts and changes.

On November 16, the board of the National Electric Energy Agency (Aneel) approved the tender for the 2021 capacity reserve auction. The event is scheduled for December 21 and will focus on contracting thermoelectric plants.

This will be the government’s first auction for contracting power product capacity reserve, as this modality was regulated by presidential decree in April of this year.

Thus, the capacity auction is a way to bring greater safety and reliability to the national electricity system. In this event, it will be possible to better price the attributes of each source, making it possible to separate the energy ballast and the energy contracted for the future.

2021 Capacity Reserve Auction

Capacity auctions can have existing and new designs. The contracts will last for 15 years, with supply starting in July 2026 — for the power product — and January 2027 — for the energy product —. According to the notice, the reference marginal cost of the energy product was R$212/MWh and the marginal cost for the power product was R$974 thousand/MW per year.

The event had 132 registered projects, offering nearly 51,000 megawatts of power, with 9GW already in operation. Of the total forecast, 47 thousand MW come from natural gas-fired thermoelectric plants. For the energy product, contracts will be signed in the Regulated Environment, if the buyers are distributors, and also in the Free Environment, if the acquisition serves free consumers, self-producers, electricity trading agents, retail agents and participating generators as buyers .

Two types of products will be traded in the auction. The energy product and the power product. In the first case, the product negotiated will be the delivery of energy produced by the plant, as occurs in other auctions. New thermoelectric plants may participate, with operational inflexibility of up to 30%.

The power product, on the other hand, is negotiated to deliver power availability. In other words, the plant is available to be activated by the National Electric System Operator (ONS), whenever necessary, such as peak hours or system failures. New or existing thermoelectric plants with operational flexibility and new thermoelectric plants with operational inflexibility of up to 30% may participate in this operation, provided they are winners of the energy product.

The importance of the event

Currently, there is an expansion of intermittent sources in the Free Market, making the hiring of instantaneous generation to be attributed only to the Regulated Market. Thus, with the Capacity Auction, this attribute is now paid by all consumers, including the Free Market, with the creation of a new charge. Contracts will be signed by CCEE and paid by all consumers.

Another point of the 2021 capacity auction is that the projects that win the event will have to comply with the daily dispatch schedule of the ONS and will be subject to penalties and fixed revenue reduction from capacity contracts, in case of unavailability greater than that declared.

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