Brazil's thermal O&M market predicted to grow from 2025

Brazil's thermoelectric operation and maintenance (O&M) market is likely to grow from 2025, predicts Adriano Marcolino (pictured), general manager of business development agreements and upgrades at Wärtsilä. 

According to the executive, the main vectors for the expansion are the investments in new plants and the renewal of power purchase agreements (PPAs) with the government and electricity distributors. 

"In the short and medium term, we have the results of the last backup capacity auction of 2021 and the expectation of new tenders in 2024 and 2025, besides the possibility of some contract renewals during the implementation period of new plants," Marcolino told BNamericas.

On Wednesday, the Finnish multinational announced it had signed an O&M renewal agreement with Brazilian independent energy producer Geradora de Energia do Amazonas (Gera Amazonas) for the Ponta Negra thermal plant in Amazonas state capital Manaus. 

The original agreement dates from 2006, when the plant was commissioned, and the two-year renewal ensures that Gera Amazonas can meet its power purchase obligations with Eletronorte. 

Ponta Negra originally operated on heavy fuel oil but in 2013 it was converted to operate with gas/diesel technology. 

Wärtsilä subsequently carried out a full gas conversion in 2020 with five of its 50SG engines installed. The plant now operates in 24/7 baseload mode delivering 60MW to the system. 

Parts and service for all planned overhauls are included in the scope of the agreement.

Wärtsilä also has two O&M contracts signed in mid-2022, one with the Termocabo power plant in Pernambuco and another with Cristiano Rocha in Amazonas. 

"Meanwhile, we have other contract renewals in progress with customers in Brazil, Bolivia and Argentina," Marcolino said.