Brazilian wind power cheaper than natural gas

by Dave

News from BusinessGreen

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.

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.

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