The Brazilian government plans to hold the country's first bidding next Monday exclusively for suppliers of renewable energy, the state Energy Research Company (EPE) said Tuesday.

The so-called A-3 energy auction aims to contract suppliers of energy derived from solar and wind farms, small hydroelectric plants, and thermal and biomass plants, with the firm that puts in the lowest price for its energy eligible to win a government contract.

The government has established a ceiling of 126 reals (54.8 U.S. dollars) per megawatt hour.

Solar power is still not as competitive as other renewable energy sources, but the projects included in the auction will allow for the inclusion of solar power in Brazil's energy network, EPE President Mauricio Tolmasquim said in a company statement.

"The presence of solar farms in next week's auction shows entrepreneurs' concrete interest in investing in this energy source," he said.

A total of 429 energy suppliers were approved by the EPE to participate in the auction, including 381 wind farms, 31 solar farms, 10 small hydroelectric plants and seven thermal or biomass plants.

The A-3 auction is for projects that will come online by January 2016, the year Brazil hosts the Summer Olympics in Rio. Endi

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