How hydropower fared in Brazil’s latest power tender

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Brazil recently held an A-6 auction, to source electricity from new projects, with supply due to begin by 2025. This resulted in 91 projects being awarded, with a total capacity of 2,979 MW, with expected investments of 11.1bn reais (US$2.7 billion). Of this total, hydroelectricity accounted for 445 MW. 

“The results are a clear sign of the expectations for energy demand growth, eyeing the country’s economic resumption. At the same time, there are expressive investments in the energy matrix diversification, guaranteeing the sources’ complementary nature,” Rui Altieri, president of the council of power trade chamber CCEE, said in a statement.   

According to BNamericas, for hydropower, contracts were closed for two large plants with at an average price of 157.08 reais/MWh, 19 small hydro units (between 5 MW and 30 MW) at 232.72 reais/MWh and six mini-hydro plants (below 5 MW) at 232.05 reais/MWh. Total capacity negotiated is 445 MW, and investments are expected to reach 1.7bn reais, distributed between Santa Catarina, Paraná, Mato Grosso, Minas Gerais, Goiás, Espírito Santo and Bahia states.

One of the highlights was the deal closed for the 142-MW Sao Roque hydroelectric plant, which will allow for the resumption of construction that had been halted since 2016.     

For the other technologies, a total of 44 wind projects with a capacity of 1,040 MW won contracts. Solar contracts totaled 11 and 530 MW. Thermopower and biomass accounted for the remainder of the awarded contracts.

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