Sampaio: Small-scale hydro best for Proinfa

Brazil's government should prioritize small-scale hydro power in its Proinfa renewable energy plan because of shorter construction periods, cheaper costs, and greater use of Brazilian-produced goods than the other two Proinfa power sources, wind and biomass, according to Firminio Sampaio. Sampaio is the former head of atate power holding Eletrobras, and is now the president of the national center for the development of small-scale hydro plants, CndPCH. However, regardless of what power source, if any, is prioritized in Proinfa, the program's subsidies make it the ideal way to encourage new investment in future generation at a time when the present surplus makes potential returns unattractive, Sampaio said, newspaper Gazeta Mercantil reported. "Small hydro plants are an attractive investment which is totally paid off in seven or eight years," Firminio was quoted as saying. Proinfa guarantees that state power holding Eletrobras and/or subsidiaries will buy 3,300MW of renewable power, but few projects have made it beyond the drawing board because the final details of the program have not been ironed out. According to the CndPCH, power regulator Aneel has approved 167 small-scale hydro projects, of which 40 have all the necessary permits. Together, the 167 projects represent 8.3bn reais investment and 3,067MW capacity.