Brazilian wind power cheaper than natural gas

 The Brazilian authorities have this week confirmed that wind power in the country currently costs less than natural gas, after a series of energy auctions saw wind farm operators undercut other forms of energy generation.
A photo of a line of at least seven wind turbines stretching into the distance, with the wind turbine blades blurred by their motion.
Seventy-eight wind power projects won contracts in last week’s energy auctions held by Brazil’s National Electric Power Agency, totalling 1,928MW and priced at approximately 99.5 reals (£37.4) per MWh.

By comparison, the average price for power generated with natural gas is currently 103 reals (£38.7) per MWh in Brazil, while the average price for energy determined through the auctions was 102.07 reals per MWh.

According to Brazil’s Energy Research Company (EPE), wind power is also now trading around 19 per cent cheaper per MWh than the average price in Brazil last year, suggesting the price of the technology is becoming a more competitive.

EPE president and chief executive Mauricio Tolmasquim said the auctions show that wind and natural gas are competitive, predicting wind prices will continue to fall in Brazil.

“That wind power plants have been contracted at two digit prices, below 100 reals per MWh, showcases the energy market competition through auctions,” he said. “That wind power could reach these lows versus natural gas was unimaginable until recently.”
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