Brazilian government announces terms of upcoming hydroelectric power auction

Brazil Flag

Signature bonuses signed by power generators in an upcoming hydroelectric power auction will net the Brazilian government about US$4 billion, according to terms of a resolution published this week in Brazil's official gazette.

The technical and economic parameters, established by Brazil's National Energy Policy Council (CNPE), stipulate that winning bidders must pay 65% of the payment in cash at the time of the contract's signing, with the remaining 35% to be paid within 180 days.

CNPE's rules also say that between 100% of energy produced by the plants must go to Brazil's regulated market for the entirety of 2016. Beginning Jan. 1, 2017, operators must only guarantee 70% of the plants' output, with the remainder free for sale.

The power auction, to be held by power regulator Agencia Nacional de Energia Eletricqa (Aneel) on October 30, offers 30-year concessions for plants located in states Sao Paulo, Minas Gerais, Goias, Parana and Santa Catarina. The plants have a cumulative output capacity of about 6 GW.

Some of the projects being offered are those surrendered by previous operators following a set of sweeping energy tax reforms that were introduced to Brazilian utilities in December 2012.

For more from Brazil, 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


The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

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 ...

Latest PennEnergy Jobs

PennEnergy Oil & Gas Jobs