New auctions will replace oil-fired power plants with gas ones

The government will resume plans to hold new auctions of electricity generation to replace a group of oil and dieselfired plants totaling 3,000 megawatts whose contracts expire in 2024. The auctions would only hire gas-fired capacity, which has lower costs and pollutes less, precisely as officials try to liberalize the gas market and promote an overall decline in its costs. The Mines and Energy Ministry’s Electricity Secretary, Ricardo Cyrino, says the government will start holding public hearings in the next few days to discuss the proposal. The idea is to hold an “A4” auction in 2020, with power supplies beginning in 2024.

Source: Valor Econômico