Brazil’s electricity regulator said October 11 it qualified five hydroelectric and 14 thermal power projects to sell about 9,000 MW in an October 16 power auction.
Agencia Nacional de Energia Eletrica (ANEEL) also qualified 31 utilities to buy the energy. The bidder offering the lowest power tariff for future delivery wins. The auction system was designed to keep a lid on prices while leaving the business attractive enough for investors.
Hydro plants qualified for the auction include 1,087-MW Estreito on the Tocantins River in Maranhao and Para states, 855-MW Foz do Chapeco on the Uruguai River in Rio Grande do Sul and Santa Catarina states (HNN 8/1/07), 180-MW Funil on the Grande River in Minas Gerais State, 212.58-MW Serra do Facao on the San Marcos River in Goias State, and 48-MW Sao Domingos on the Verde River in Mato Grosso do Sul State.
All the hydro projects but Sao Domingos were qualified for a July auction but declined to participate. (HNN 7/30/07)
Thermal projects include seven gas-fired plants, while six would use coal or oil and one is a biomass plant.
The projects are already under concessions, but have not yet sold their energy. Some are still being constructed. The energy, to be delivered under contracts starting in 2012, is vital to help avoid shortages that many analysts are expecting after 2010.