Due to the pandemic caused by Covid-19, the electricity auctions scheduled for 2020 have been postponed indefinitely by the Ministry of Mines and Energy (MME). The postponement is provided for in Ordinance No. 134/20 (“Ordinance”), published on March 30, 2020.
The auctions are intended to meet the future energy needs of distributors, in the National Interconnected System and in the Isolated Systems (Generation Auctions), as well as the needs for the expansion of transmission systems (Transmission Auctions). The following auctions were postponed:
- Existing Energy Auctions “A-4”, 2020, and “A-5”, 2020 (MME Ordinance No. 389/2019)
- New Energy Auction “A-4”, 2020, (MME Ordinance No. 455/2019);
- New Energy Auction “A-6”, 2020, (MME Ordinance No. 151/2019);
- Auctions for the Contracting of Solutions to Supply Isolated Systems (Ordinance MME No. 67/2018).
- Auctions for the Concession of Public Electricity Transmission Service (Ordinance MME No. 15/2020);
The postponement was already expected by the market, especially after ANEEL removed the approval of auction notices from the agenda of the Agency’s Board of Directors meeting.
Notwithstanding, the Ordinance maintains the validity of the administrative acts already practiced in the scope of the auctions and determines that the acts that will come to define its resumption ensure a) the definition of new deadlines for the stages currently in progress and b) new carrying out of stages already concluded, if necessary.
ANEEL stressed in an official statement that this is not a cancellation, but a postponement, emphasizing its confidence in the resumption of economic activity, as soon as the public health situation involving COVID-19 has normalized.
For more information regarding the effects of coronavirus in the economy, please visit our Informative Portal COVID-19 and its Legal Impact.