Brazil: The state of Minas Gerais prepares a 200 MW solar energy auction
By: Rafael Herzberg
The state of Minas Gerais is preparing an auction, to be held in August.2015 to close up to 200 MW in solar energy deals and attract investments of USD 300 Million.
The deal involves the following conditions:
- The state will provide ICMS (VAT-type) exemption
- The PV systems must be produced in Minas Gerais
- The solar systems should be in commercial operation by the end of 2017
- CEMIG, the local energy company, will be in charge of making sure that the solar generation will be properly transmitted and distributed through its grid
In December 2013, the Brazilian state of Pernambuco developed a similar auction when the closing price was around R$ 228/MWh (USD 97/MWh back then).
For those interested in participating in this auction the following three steps should be considered especially because Brazil is a super red-tape-type country.
- Teaming up with a local company who is already involved in the energy arena
- This local company should have industrial operations and preferably already doing business with CEMIG
- Licensing agreements and joint ventures may be a good fit for such an undertaking
As a local consulting company Interact is open to assist international companies in the solar arena to help them finding in-country companies and crafting a business arrangement considering this auction and others to come in Brazil.
Links of interest
- State of Minas Gerais http://en.wikipedia.org/wiki/Minas_Gerais
- CEMIG The local utility company
- ONS independent system operator
Rafael Herzberg, consulting partner at Interact,