France-based developer Velcan Energy announced March 14 it has acquired rights to construct the 16-MW Quebra Dedo hydroelectric project on the Suaci Grande River in Brazil’s Minas Gerais State.
Velcan said construction of the project is expected to begin in the first quarter of 2009, depending on receipt of expected authorizations. The project, its fourth in Brazil, would be completed in 2010-2011.
�In keeping with our development objectives of installing a capacity of 300 MW in Brazil fairly rapidly, we are very happy to have acquired one more investment opportunity in our portfolio of projects in Brazil, now totaling 91 MW,� Velcan Group Co-managing Director Jean Luc Rivoire said.
Velcan said it is too early to predict detailed financial performance of Quebra Dedo. However, the company said, if market conditions do not change significantly, financial performance should be in the same range as Velcan’s 14.7-MW Rodeio Bonito project in Santa Catarina State.
The developer announced the beginning of construction of Rodeio Bonito in September 2007. (HNN 9/3/07) It said net income or Rodeio Bonito is expected to range from 1.7 million euros (US$2.3 million) in 2009 to 2.4 million euros (US$3.3 million) in 2012. Part of that income is to come from sale of carbon emissions reductions.
Velcan said its strategy is to develop hydro projects in stable emerging countries having a high potential of undeveloped hydropower. It has two sources of revenue, power sales and sale of carbon credits.