Brazil association promotes addition of 7GW of small hydro power

Brazilian small and mini hydroelectric plant association Abrapch is advocating a national policy to add 7GW of the energy source to the power grid in the next 10 years.

“We have 14GW of inventoried PCHs [small hydros] and CGHs [mini hydros] that could be made viable with the will of the government and the right economic signal,” Abrapch president Alessandra Torres told BNamericas.

Small hydro plants have between 5MW and 30MW of potency and less than 13km2 of water reservoir area.

Plants with less than 5MW are classified by electric power watchdog Aneel as hydroelectric generating units (CGH).

Torres highlighted that the small hydro plant production chain is 100% local and could help boost Brazil’s re-industrialization push. 

But the sector faces challenges.

“The source needs a government signal, correct pricing of the attributes and coordinated action with the environmental agencies to unblock projects that have been waiting for years and years without analysis,” Torres said. 

Aneel recently enabled 19 small hydroelectric projects with total installed capacity of approximately 260MW to move forward with their environmental licensing processes.

The agency’s approval confirms the suitability of the undertakings in line with the inventory studies and the use of the hydraulic potential (DRS-PCH), helping to simplify other regulatory procedures.

Torres welcomed Aneel’s decision. 

“These are projects that have been a long time in the making and which will still have to be dealt with by the environmental agencies, but which Aneel considers are important,” she said. 

Torres also highlighted that hydroelectric plants can generate at times of high demand, but with low environmental impact. 

In the last two decades, Brazil practically halted the construction of hydro plants with large water reservoirs due to environmental concerns. Small hydro units have also struggled to obtain construction licenses, investors claim. 

Amid the worst drought in 94 years, the hydropower dependent country is currently using most of its thermoelectric plants, which are expensive and more polluting. 

Because of intermittency concerns, the plants are being used despite the significant growth of solar and wind power capacity. 

Last week, mines and energy minister Alexandre Silveira said the government intends to hold an auction later this year exclusively to contract energy storage systems, which could help balance the power system.