Brazil has awarded 25-year contracts for 39 wind farms to deal with an expected spike in power demand in 2016, officials said.

The wind farms, which are expected to begin operating on Jan. 1, 2016, will have a total generating capacity of 867.6 MW, the state-owned Energy Research Corporation, or EPE, said.

The government is expected to pay an average of 124.43 reais (some $53.61) per megawatt, down 1.25 percent from the initial estimate, the EPE said.

A total of 28 electricity distributors participated in the auction, signing purchase and sale agreements for the power generated by the wind farms.

Wind energy was the big winner at the auction, which also drew solar, biomass and hydroelectric power producers.

"This is the time for wind (energy), no doubt about it, but in the mid-term scenario, solar (energy) will have its place," EPE chief Mauricio Tomasquim said in a statement.

The auction yielded good results, the Brazilian Wind Energy Association, or ABEEolica, said.

ABEEolica represents nearly 85 wind power organizations. EFE