Brazil’s watchdog authorizes small hydro projects to participate in A-5 auction

Brazil’s electric power regulator Aneel has issued a series of decisions allowing small hydropower plants (PCHs by the Portuguese acronym) to take part in the upcoming new (greenfield) generation A-5 auction, scheduled for July 25. 

The measures include four project revisions, two new approvals and the reclassification of three PCHs as small hydroelectric generating stations (CGHs).

PCHs between 1MW and 30MW of installed capacity and CGHs up to a maximum of 1MW. 

The revised projects include the Brinquinho, Boa Vista, Cachoeira Branca and 3 Alta PCHs, while the Água Clara and Japeri projects received new approvals. 

Additionally, the reclassification of the Correntinha, Zelinda and Sertãozinho PCHs as CGHs was confirmed, allowing them to participate in the auction.

These projects required Aneel's review because they were based on older inventories, according to Alessandra Torres, president of the local small hydroelectric plant association Abrapch.  

"By updating their hydrological and energy studies, these developments underwent necessary revisions," she told BNamericas. 

Backup capacity

Large hydro plants (UHEs) will have the opportunity to compete in the next backup capacity tender, which will take place on June 27. 

Some 12 expansion projects have been approved by Aneel to compete in the auction. Combined, the proposed undertakings will contribute an additional 5.29GW.