EDP eyes Furnas partnership in new power auction

The EDP Brasil holding of Portugal's state power company EDP wants to team up with federal power sector holding Eletrobrás - especially generator Furnas - to bid for four concessions in the government's first auction of new generation capacity, local press reported. Two hydro projects identified are Ipoeiras in Tocantins state and Mirador in Goiás state, with the other two still under consideration. EDP Brasil is already working with Furnas on the 452MW Peixe Angical hydro project in Tocantins state. In 2004 Furnas bought a 40% stake in the project, which is scheduled for completion by December this year. EDP Brasil owns distributors Escelsa, Enersul and Bandeirantes and will only invest in projects it can finance without having to ask its head office for loans, EDP Brasil president António Martins da Costa said. Da Costa called for a more stable regulatory environment, and said that EDP Brasil would consider buying local partner Grupo Rede, which is exiting generation in order to concentrate on distribution, out of the 902MW Lajeado hydro plant in Tocantins state. EDP Brasil owns 27% of the plant.