Government and Policy News

China Three Gorges big winner in Brazil’s hydropower plant auction

An auction held today for the operating rights of 29 Brazilian hydropower projects has netted the government more than US$4.5 billion.
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An auction held today for the operating rights of 29 Brazilian hydropower projects has netted the government more than US$4.5 billion.

The auction — which consisted of plants with expired or nearly expired licenses — will put about $2.9 billion into the Brazilian government’s pockets before the end of the year, with the remainder to be paid within 180 days, per rules established by Brazil’s National Energy Policy Council (CNPE) in September.

Power conglomerate China Three Gorges Corp. was the biggest player in the auction, paying more than $3.6 billion for a lot that included the 1,550-MW Jupia and 3,444-MW Ilha Solteira hydroelectric plants. In return, CTG will receive annual revenues of about $632 million, subject to periodic review.

Other winning bidders include (all capacities listed in MW):

  • Enel Green Power, awarded rights to Maurao 1 (8.2) and Paranapanema (31.5);
  • Copel Geracao e Transmissao, awarded rights to Governador Pedro Viriato Parigot de Souza (260);
  • Companhia Energetica de Minas Gerais (Cemig), awarded rights to Ervallia (6.9), Coronel Domiciano (5), Camargos (46), Itutinga (52), Sinceridade (1.4), Neblina (6.5), Cajaru (7.2), Gafanhoto (14), Marmelos (4), Joasal (8.4), Paciencia (4), Piau (18), Peti (9.4), Dona Rita (2.4), Tronqueiras (8.5), Marins (7.7), Salto Grande (396) and Tres Marias (396);
  • Celg, awarded rights to Rochedo (4) for $4.24 million; and
  • Celesc Geracao, awarded rights to Garvia (8.6), Bracinho (16.5), Rio dos Cedros (7.4), Salto Weissbach (6.3) and Palmeiras (24.6).

The power auction was to have been held by power regulator Agencia Nacional de Energia Eletricqa (Aneel) in October, but was delayed multiple times.

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