Brazil's Aneel increases auction rate for small hydroelectric plants

Brazil Flag

Brazilian power regulator Agencia Nacional de Energia Eletricqa (Aneel) has announced a plan allowing power developers to seek higher rates for energy generated by small hydroelectric projects to be auctioned during an upcoming A-5 power sale in April.

The increase is intended to maintain interest in the country's small hydro sector after the Banco Nacional de Desenvolvimento Economico e Social (BNDES) cut its financing for small plants from a maximum of 70% to 50%.

Now, Aneel will allow a cap of US$65.8 p/MWh generated by small hydropower projects -- up from about $51.4 p/MWh from an auction in November and $46.4 p/MWh from an auction in June.

Brazilian energy auctions have Aneel-established ceilings, with developers bidding to supply power generated by the proposed projects. Contracts are then awarded to whichever company bids lowest.

For more policy and regulations news, visit here.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...

Latest PennEnergy Jobs

PennEnergy Oil & Gas Jobs