Exclusive Auction for Small and Medium Plants Determines the Direction of the Energy Matrix with Long-Term Contracts and Points Out the Major Market Players.
The Brazilian government has just defined an important part of the country’s energy future. An auction focused on small and medium hydroelectric plants resulted in the negotiation of 815 megawatts (MW) of capacity. The operation will unlock R$ 5.5 billion in new investments, according to official data from the Electricity Trading Chamber (CCEE).
Energy Auction Enables 815 MW in Small and Medium Hydroelectric Plants
The first government auction dedicated exclusively to small and medium hydroelectric plants confirmed strong market interest. The event secured the contracting of projects totaling 815 MW in new plants.
The average price of the energy negotiated was R$ 392.84 per megawatt-hour (MWh). This final price represented a discount of 3.16% off the initial value, demonstrating competition among generators.
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20-Year Contracts and Start of Supply
The contracted hydroelectric plant projects will have a long operational life cycle. The contracts were signed for a period of 20 years, ensuring stability for investors and the system. The start of power supply from these new plants is scheduled for January 2030.
The auction included different types of small and medium-sized plants, such as small hydroelectric generating plants (CGHs), mini hydroelectric plants (PCHs), and hydroelectric plants (UHEs) with capacity of up to 50 MW.
Main Buyers in the Hydroelectric Auction
Major market players secured the purchase of the energy. The main buyer was Amazonas Energia, which is in the process of transitioning control to Âmbar, part of the J&F group.
In addition, major distributors such as Neoenergia (Celpe, Coelba, and Cosern), Enel (Eletropaulo and Coelce), Energisa (Paraíba and Tocantins), and Light also actively participated in the purchases, securing energy for their consumers in the next decade.
