Brazil Approves Higher Auction Rate for Small Hydropower Plants

(Bloomberg) — With Brazil’s development bank BNDES
offering less financing for small hydroelectric power projects,
the country’s energy regulator will let developers seek higher
rates at an energy auction planned for next month.

The regulator, Aneel, approved a ceiling price of 210 reais
($65) a megawatt-hour for small hydro projects, typically with
50 megawatts of capacity or less. That compares with maximum
prices of 164 reais a megawatt-hour in a similar auction in
November and 148 reais in June.

BNDES, formally Banco Nacional de Desenvolvimento Economico
& Social, will now finance no more than 50 percent of small
hydropower plants, compared with 70 percent in the past,
according to Andre Pepitone da Nobrega, director of Aneel.

In Brazil’s energy auctions, regulators set a ceiling and
developers bid down the price at which they are willing to
provide electricity from planned projects. The lowest bids win
contracts to sell power.

Regulators set a ceiling price of 281 reais a megawatt-hour
for thermal plants that burn coal, biomass and natural gas for
the April 30 auction. The projects must be complete within 5

To contact the reporter on this story:
Anna Edgerton in Brasilia at

To contact the editors responsible for this story:
Reed Landberg at;
James Attwood at
Will Wade, Carlos Caminada

About BloombergNEF

BloombergNEF (BNEF) is a strategic research provider covering global commodity markets and the disruptive technologies driving the transition to a low-carbon economy. Our expert coverage assesses pathways for the power, transport, industry, buildings and agriculture sectors to adapt to the energy transition. We help commodity trading, corporate strategy, finance and policy professionals navigate change and generate opportunities.
Sign up for our free monthly newsletter →

Want to learn how we help our clients put it all together? Contact us