French energy company Suez says it plans to auction power from the 3,300-MW Jirau hydroelectric project before its consortium actually bids to develop the project in a May 19 concession auction.
Suez, owner of Brazil utility Tractebel Energia, told Business News Americas it plans to auction project power May 16 to free market purchasers to help set its price bid for the Jirau concession auction. The winning concession bidder is the group that offers the lowest power price to the government for the regulated electricity market, below a price cap of 91 reais (US$55.10) per MWh. (HNN 4/30/08)
ï¿½Of course this (power) auction result is conditional on the Suez consortium winning the bid for Jirau,ï¿½ a Suez spokesman said.
Suez said it plans to bid to build and operate Jirau on the Madeira River, in consortium with federal utilities Eletrosul Centrais Eletricas S/A and Companhia Hidro Eletrica do Sao Francisco ï¿½ CHESF, and engineering company Camargo Correa.
Thirty percent of Jirau’s power is to be sold in the free market at a price established by the winning consortium. Bidders do not set the free market price in the concession auction.
The concession auction is to be carried out electronically on May 19, in a closed environment at Agencia Nacional de Energia Eletrica headquarters in Brasilia.
Jirau would be built 84 kilometers from the Bolivian border at Porto Velho in Rondonia State on the Madeira, an Amazon River tributary. The first of its 44 turbine-generators is expected to go on line in 2013.