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Brazil auctions rights to hydroelectric plants for $4.5 billion

Staff writer ▼ | November 30, 2015
The government of Brazil announced that the concession to operate all 29 hydroelectric plants put on auction were purchased, for a total of R$17 billion ($4.5 billion).
Brazil hydroelectric plant
Electricity   The 29 plants in Brazil were on auctions
According to the government this money will help the country balance its public accounts in 2016.

“The results show that the electric sector is safe to receive investments and that the country maintains its tradition to comply with contracts,” said Mines and Energy Minister, Eduardo Braga. The winners will sign thirty-year concession contracts with Brazil’s government.

The 29 plants have a total capacity to generate 6,000 megawatts. The power plants auctioned on Wednesday are already operational but their contracts have expired or are about to end. Thiss auction was initially scheduled to take place in November 6, but was postponed because Brazil’s Congress had not approved auction rules.

The largest lot was purchased by China Three Gorges (CTG) which paid R$13.8 billion for the hydroelectric plants located in Ilha Solteira and Jupia. The other concessions were purchased by Brazilian electric companies and Italy’s Enel.