Brazil sets December enegery auction to include hydropower plants

Stephan Nielsen – Bloomberg, 07/10/2013

Energy developers in Brazil will bid for contracts to sell electricity Dec. 13 from plants due to go into operation in five years, including a 700-megawatt hydropower project in the Amazon.

Companies planning hydro projects will bid for 30-year contracts in the so-called A-5 auction, according to a notice today in Brazil’s official gazette. Companies developing projects that run on coal, natural gas and biomass will bid for 25-year contracts.

This will be the second A-5 auction this year. The government will hold a similar event Aug. 23 and organized the December one to provide additional time for agencies to issue environmental licenses for hydropower plants including the Sao Manoel project on the Teles Pires river in Mato Grosso state, according to a spokesman for the national energy regulator. The Empresa de Pesquisa Energetica official asked not be identified because of the organization’s policy.

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