UPDATE – Brazil power auctions postponed to September

Brazil’s mines and energy ministry postponed two electricity auctions from August until September to allow organizers and potential bidders more time to prepare.

The Ministerio de Minas y Energia delayed the so-called A-3 auction, with power for delivery in 2011, to September 17 from August 19. Additionally, it delayed the A-5 auction, with power for delivery in 2013, to September 30 from August 28.

The ministry said August 12 the delay would give additional time to some project developers to obtain technical qualification documents that are still lacking.

On August 5, the head of Brazil’s energy research agency said two hydropower projects were pulled from the A-5 power auction for failure to receive state environmental licenses in time. (HNN 8/6/08)

At that time, Chairman Mauricio Tolmasquim, of Empresa de Pesquisa Energetica (EPE), said that meant only one hydropower project, 350.2-MW Baixo Iguacu on the Iguacu River in Parana State, would join a group of thermal power plants in the power sale to be administered by Brazil electricity regulator Agencia Nacional de Energia Eletrica (ANEEL). (HNN 7/25/08)

Tolmasquim told an energy summit that the Secretaria de Meio Ambiente, the environmental secretariat of Rio de Janeiro State, would not grant licenses in time to the 80-MW Barra do Pomba and 50-MW Cambuci projects, both on the Paraiba do Sul River in Rio de Janeiro.

ANEEL had qualified all three projects to sell power in a 2007 auction. However, they were withheld from that sale for environmental clearance and other problems. (HNN 1/19/07)

The regulator announced July 18 that a new feasibility study on Baixo Iguacu now is available at ANEEL headquarters. It said the new study is a result of adjustments in the process of environmental licensing for the plant. (HNN 1/29/07)

The A-5 auction is to include purchasing of power by distribution utilities from new projects on the national integrated transmission system, from enlargements of existing plants, and from energy importers. Power is to be delivered beginning in January 2013. Power contracts are to be for 30 years for hydro projects and for 15 years for other generating technologies.

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