Hogan Lovell OffshoreBook 2023 230809 OnlinePDF - Flipbook - Page 35
Offshore Wind Worldwide 2023
4. OFFTAKE/PPA
The regulatory framework and specific
details regarding the remuneration system,
offtake regime, and tariff schemes are still
being developed by Brazilian authorities.
Currently, a ministerial ordinance establishes that ANEEL will regulate offshore wind
exploration. ANEEL has recently emphasized
the need for such authority and responsibilities to be established by law, including the
management of areas on the Brazilian continental shelf.28 The agency will be responsible for leasing areas for offshore wind parks
and entering into contracts with companies.
A number of market participants expect that
further regulation should be published by
2024.
According to the MME, specific auctions for
the procurement of offshore wind energy
may be conducted considering studies
developed by the EPE or the Ten-Year Energy
Expansion Plan (Plano Decenal de Expansão
de Energia) published by the EPE, following
criteria of focus and efficiency.
35
scheme and whether the offtake mechanism will have a take or pay structure will be
determined by the regulatory framework
established by ANEEL in consultation with
the Ministry of Mines and Energy.
The consequences under the offtake regime
for project delays in the offshore wind sector will depend on the contractual arrangements between project developers and
off-takers. Delays could potentially result in
penalties, contractual adjustments, or modifications to the project schedule, impacting
the revenue streams and financial viability
of projects. The specific consequences will
be defined in the contractual arrangements
and regulatory framework established by
ANEEL.
The determination of feed-in tariffs for
offshore wind projects will be based on
the regulations and auction mechanisms
implemented by ANEEL. 29 However, as
the regulations are still being developed,
specific examples of actual and future tariffs
for offshore wind projects are not currently
available.
Details of the remuneration system, including the basis for income, duration of a
project, and the parties involved, will be determined in future regulations to be published ANEEL. The income for offshore wind
farms is expected to come from contracts
such as Power Purchase Agreements (PPAs)
established through auctions or direct negotiations with off-takers. The specific tariff
28 According to the General Officer on behalf of the agency, Mr. Sandoval Feitosa on May 30th, 2023, during a public hearing held by the Senate’s Infrastructure Committee. Source: https://www.poder360.com.br/energia/papel-da-aneel-para-regular-eolica-offshore-deve-estar-em-lei-diz-diretor/.
29 As established by article 23 of Decree No. 10,946/2022.
