Brazil to auction nearly 3 GW of hydropower plant concession rights

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Brazil to auction nearly 3 GW of hydropower plant concession rights

Later this year, concession rights for five hydropower projects will be auctioned by Brazil's Ministry of Mines and Energy.

September 30 will be the date for the 30-year concessions auction, which is part of Brazil's drive to sell licenses for infrastructure and energy projects, such as power plants, roads, airports and port terminals. The plants will be split as follows: the 14 MW Agro Trao; the 424 MW Jaguara, 408 MW Miranda and 380 MW Volta Grande; and the 1.7 GW Sao Simao.

Holding the operating licenses for Jaguara, Volta Grande, Sao Simao and Miranda, Companhia Energética de Minas Gerais (Cemig) refused to agree with controversial energy sector reforms enacted by former president Dilma Rouseff resulting with legal battles and showed interest in filing another appeal before the auction.

Being the second auction of its kind in Brazil, the Energy Ministry expects the sale of new operating rights will raise around BRL12 billion (US$3.82 billion) whereas the first auction in November 2015 sold 29 licenses for dams worth BRL17 billion (US$5.4 billion).

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