The Brazilian National Electric Energy Agency (ANEEL) held the A-5 Power Generation Auction on December 20, resulting in 42 new electricity generation projects with a total installed capacity of 1,211.5 megawatts (MW), to meet the projected demand of distribution companies in 2016.

Of the 42 total contracted projects, 39 are wind farms, totaling 976.5 MW; which is 81 percent of the total power traded in the auction.

The average price per MWh was R$ 102.18 (approx. US$ 55 per MWh), which included an average discount of 8.77 percent. According to Brazil's Energy Research Company (EPE), the auction fully met the demand of energy distribution companies.

New wind power plants will be installed in the states of Bahia, Ceara, Goias, Maranhao, Rio Grande do Norte, Rio Grande do Sul, Santa Catarina and Sao Paulo, with a total projected investment of R$ 4.3 billion (approx. US$ 2.3 billion).

The San Roque hydroelectric power plant (135 MW) was allocated to the state of Santa Catarina at the price per MWh of R$ 91.20 (approx. US$ 49.1 per MWh), which was a 25.85 percent discount to the original price, with expected investments of R$ 652 million (approx. US$ 351.1 million).

According to EPE, Brazil's wind energy potential is estimated to be 143,000 MW, with the ability to reach 300,000 MW with the use of modern generators.

Between 2009 and 2010, the country's wind power generation increased by 50.5 percent; and currently accounts for 0.4 percent of the total electricity produced in Brazil.

The increasing use of wind energy should help Brazil maintain the standing of its national energy matrix as one of the cleanest in the developed world, with a 45.4 percent share of renewable resources. In electricity generation alone, 87.1 percent of Brazil's renewable energy comes from clean sources.