Government prepares auction to contract energy from biomass power plants – 06/11/2021 – Market

The Ministry of Mines and Energy should soon hold a tender to close the purchase of the production of biomass-fired electricity generation plants, which is taking place in view of a water crisis that has put pressure on the level of reservoirs at hydroelectric plants in Brazil.

The information was confirmed by the folder on Friday (11), after Reuters published the day before that sugarcane mills had been talking to government officials about measures that could allow greater energy generation at their facilities, with aimed at supporting the electrical system.

“The forecast is that the public consultation ordinance of the guidelines for the auction for contracting biomass will be published by the end of this month,” said the ministry in a note.

A survey by the Sugarcane Industry Union (Unica) and the Energy Cogeneration Industry Association (Cogen) pointed out that power stations powered by biomass, mainly from sugarcane bagasse, could generate an additional 1,249 gigawatt-hours (GWh) in energy between July and December 2021 and more than double that in 2022 with government incentive measures, such as an emergency auction to purchase extra production.

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