Brazil’s Ministry of Mines and Energy wants to advance debates on criteria for choosing and disputing areas for offshore wind farms

The Ministry of Mines and Energy (MME) will begin to evaluate the regulation of parameters for the selection of areas destined for offshore wind generation projects, according to the ministry’s Secretary of Energy Transition and Planning, Thiago Barral. The executive also said that the ministry will discuss criteria so that the auctions for areas considers parameters in addition to financial proposals.

The legal framework for offshore wind farms (PL 576/2021) was approved by the Chamber of Deputies in December, with the addition of amendments relating to other matters, such as hydroelectric power plant contracts and extension of thermoelectric power plant contracts. The text will now be analyzed by the Senate.

According to Barral, the fact that the sector’s legal framework is still under discussion in Congress does not prevent discussions from taking place regarding criteria for selecting areas and planning aspects, such as transmission and port infrastructure. For him, it is possible to start discussions now to “skip stages” of regulating the segment.

“At this moment, the priority is to deepen the parameters for prioritizing the areas to be initially allocated for project feasibility studies. This is essential to provide predictability and mobilize actors”, he told journalists during an event in Rio de Janeiro.

For Barral, it is important that the criteria for selecting companies competing for areas does not only take into account the financial value of the proposals. According to him, international experience has shown that choosing financial parameters can make projects less competitive.

“Our reflection is that simply a criterion of who pays more for the area, if it is not calibrated well, could be shooting itself in the foot,” he stated.

According to the secretary, reflections on regional parameters, transmission planning and other aspects that stimulate the country’s socio-economic development will be considered.

“There is a broad set of criteria, from criteria in relation to the development of associated industrial clusters to parameters of other formats of government participation paid after the project is carried out”, added Barral.

Petrobras, for example, has already stated that it considers it important to adopt criteria for qualifying offshore wind farms to prevent the entry of companies that do not intend to carry out the projects.

Regarding debates on local content commitments for offshore wind farms, Barral said that the MME does not yet have a position on the topic and that the idea is to debate this issue with other ministries, taking into account discussions on marine spatial planning and industrial policy.

Asked about the possibility of holding an auction for the transfer of areas this year, Barral stated that it is not yet possible to make a prediction, given that the bill is still in progress in Congress.

Source: epbr https://epbr.com.br/mme-quer-adiantar-debates-sobre-criterios-de-escolha-e-disputa-de-areas-para-eolicas-offshore/

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