UTE calls for bids on 500MW Brazilian supplies

Uruguay's state power company UTE has called for bids for the two-month supply of 500MW of interruptible power from Brazil starting January 10, according to UTE information. The agreement can be extended for two more months if the parties agree. Bids should be presented by 2 pm local time on January 7 at the São Paulo offices of Brazil's power trading chamber CCEE, offering a price in Brazilian reais/MWh. Bids will be opened the same day and the contract offered to the lowest bidder. In the event of equal prices being offered, bidders will have 48 hours in which to submit a different price. Vendors must obtain an export permit from Brazil's electricity regulator Aneel by January 3, CCEE said in a statement. Contract signing is dependent on Brazil's electricity regulator Aneel certifying that the vendor meets technical requirements to sell power, and Brazil's grid operator ONS will coordinate the dispatch of the power. The vendor will be responsible for securing all export permits and for paying duties, and is required to deliver the power at the Garabí II node on the two countries' border. On December 20, UTE awarded Brazilian power trading company Enertrade a 12-month contract to supply 72MW from Brazil starting January 1 after it submitted the lowest bid of 0.88reais/MWh. Uruguay has turned to Brazil a number of times this year to cover domestic shortages, as well as to buy cheaper power than Uruguay can generate itself. A 1,000MW transmission line between the neighbors is under consideration.