Brazil plans 29 green energy projects totalling 669.5MW

23 August 2015 (Last Updated August 23rd, 2015 18:30)

Brazil has approved construction of 29 power facilities in the country totalling 669.5MW of clean energy capacity.

Brazil has approved construction of 29 power facilities in the country totalling 669.5MW of clean energy capacity.

Around 19 of the projects, at 538MW, will be generating electricity from wind power, with the rest using biomass, natural gas, and small hydropower sources.

The facilities are expected to start commercial power production and be added to the national grid in 2018.

According to Brazilian power sector regulator Aneel, the constructions are expected to cost around R$2.5bn ($716m), reports Reuters.

"Reduced rainfall in 2013 and 2014 resulted in the depletion of Brazil’s hydroelectric reservoirs, prompting it to look for other sources of energy."

Tenders for the windmills, small hydropower plants, biomass and gas-fueled installations were auctioned off at a total price of R$10.96bn ($3.1bn).

The winning projects will be developed in the states of Rio Grande do Sul, Minas Gerais, Santa Catarina, Sao Paulo, Bahia, Ceara, Maranhao, and Piaui.

The country, which is chiefly dependent on hydropower, has been trying to diversify its electricity mix in the last two years.

Reduced rainfall in 2013 and 2014 resulted in the depletion of Brazil’s hydroelectric reservoirs, prompting it to look for other sources of energy to avoid a power collapse.

Power developers and distributors who that won contracts include Light, Copel, Celesc, AES Eletropaulo Grupo Votorantim, and Tractebel Energia.

The auctioned off projects are being supported by power purchase agreements valid for 20 to 30 years, reports SeeNews Renewables.