By Brazil Stock Guide – Brazil’s first power auction of 2025 for isolated Amazon regions closed on Friday with discounts as steep as 46.8% below the ceiling price, signaling cheaper electricity supply for local communities. The virtual auction was conducted by the national regulator Aneel and the Câmara de Comercialização de Energia Elétrica (CCEE).
The auction contracted supply for six municipalities in Amazonas and Pará, with two lots awarded after the government removed a third, according to Valor Econômico. While demand was set at 18.7 megawatts (MW), the outcome surpassed expectations, securing more than 50 MW and unlocking R$310 million ($59 million) in investments.
Lot 1 – Amazonas
Energias do Acre SPE LTDA won Lot 1, offering R$2,729.70 per megawatt-hour (MWh), a 22% discount from the R$3,500 ceiling. The company will deliver a hybrid system combining diesel-fired generation with solar, totaling 20.1 MW across five units. Investments will reach R$72.8 million, with fixed annual revenue of R$17.4 million. Amazonas Energia, the local distributor, will purchase the supply.
Lot 3 – Pará
The IFX-You.On – Sisol consortium secured Lot 3 with a bid of R$1,593.16 per MWh, a 46.8% reduction from the R$3,000 ceiling. Its project will also use hybrid diesel-solar generation, totaling 30.1 MW. The consortium pledged R$240 million in investment, with fixed annual revenue of R$48.2 million. Equatorial Energia (EQTL3.SA) will serve as the off-taker.
Renewable threshold
For the first time, the auction required a minimum 22% share of renewables or natural gas. Brazil’s Empresa de Pesquisa Energética (EPE) reported that both winning projects included hybrid systems with battery storage, boosting renewable penetration to 23% in Lot 1 and 80% in Lot 3.
“The fact that we are burning very expensive fossil fuels, transported under complex river logistics in a sensitive region like the Amazon, makes the shift to renewables extremely positive,” said Roberto Brandão, technical-scientific director at the Grupo de Estudos do Setor Elétrico of the Federal University of Rio de Janeiro.