The Ministry of Mines and Energy (MME) announced the guidelines for the long-awaited “A-1” and “A-2” existing energy auctions in 2023. DOU), the rules that will guide these crucial events for the Brazilian energy sector were established. The start of supply is scheduled for January 2024 for the “A-1” auction and January 2025 for the “A-2” auction.
The main novelty brought by the ordinance is the definition of products by quantity for which the Energy Trading Contracts in the Regulated Environment (CCEAR) will be negotiated, covering any source of energy. With the aim of aligning the prices practiced in the market for short and medium term contracts, the CCEARs will not have price updates during their effectiveness, following the practice adopted in previous auctions for existing energy.
Distribution agents are now responsible for submitting the Statements of Needs for the 2023 Existing Energy Auctions, from August 21 to September 4, 2023. These documents must include the volumes of electricity required to meet all consumer markets in the year 2024 and 2025.
With the guidelines now established, it is expected that the 2023 “A-1” and “A-2” existing energy auctions will be carried out in a transparent and efficient manner, contributing to the stability and development of the Brazilian electricity sector in the coming years .
Normative Ordinance No. 66/GM/MME
Normative Ordinance No. 66/GM/MME, of June 15, 2023, establishes the guidelines for conducting Auctions for the Purchase of Electric Energy from Existing Generation Projects. These auctions are called “2023 “A-1″ Existing Energy Auction” and “2023 “A-2″ Existing Energy Auction”.
According to the ordinance, the National Electric Energy Agency (ANEEL) is responsible for promoting these auctions, following the guidelines defined by the Ministry of Mines and Energy. Auctions must be held sequentially on December 1, 2023.
The Ordinance establishes that ANEEL must prepare the Invitation to Bid, its Annexes and the Energy Trading Contracts in the Regulated Environment (CCEARs) for the Existing Energy Auctions. The electric energy traded in the auctions will be subject to CCEARs in the modality by quantity of electric energy, and the costs arising from hydrological risks will be fully assumed by the sellers.
The electricity supply periods of the CCEARs to be negotiated in the auctions are defined in the ordinance: beginning on January 1, 2024 and ending on December 31, 2025 for the Existing Energy Auction “A-1”, of 2023, and beginning on January 1, 2025 and ending on December 31, 2026 for the 2023 “A-2” Existing Energy Auction.
The ordinance also establishes the rules for the presentation of Declarations of Need to Purchase Electricity by distribution agents, as well as deadlines for presentation, ratification or rectification of these declarations.
The Systematic for Electricity Purchase Auctions from Existing Generation Enterprises is defined in the Annex to the ordinance, establishing the definitions, technical terms and expressions to be used in the auction process. This is the main information present in Normative Ordinance No. 66/GM/MME of June 15, 2023.
