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BNDES Finances Small Hydropower Expansion
By Keith R | December 26, 2008
Topics: Energy & the Environment, Renewable Sources | No Comments »
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In recent months Brazil’s National Development Bank (BNDES) has been pumping a lot of money into small-scale hydroelectric power (PCH in Portuguese) projects. How much? R$910 million in 15 projects since August for a total new power generation of capacity of 264.5 megawatts (MW). That means by end-2008 BNDES will have 85 PCH projects in its portfolio representing 1,660 MW of installed generating capacity.
What is small-scale hydro? There’s no international consensus on what constitutes small-scale: Europe tends to limit it to 10 MW, India 15 MW and China 25 MW. The Brazilians consider it anything up to 30 MW.
As long-time Temas Blog readers know, Brazil’s national energy plan called for a tenfold increase in PCH capacity, and the Program for Accelerated Growth (Programa de Aceleração do Crescimento – PAC) called for 60 new PCHs to be constructed.
The 15 most recent projects financed include:
- R$91.3 million approved in August for the construction of PCH Santa Luzia Alto, in the Chapecó River, between the cities of São Domingos and Ipuaçu in the southern state of Santa Catarina (SC). BNDES funds account for 67% of total investment in the project. The 28.5 MW plant is scheduled to enter into operation in January 2010. The plant is being developed by the group Gomes Lourenço, which has a similar project in Minas Gerais also financed by BNDES.
- R$121.2 million approved in October for the construction of two PCHs on the Itabapoana River dividing the southeastern states of Rio de Janeiro (RJ) and Espírito Santo (ES), as well as associated power transmission lines. The 19 MW Pedra do Garrafão plant will be located between the municipalities of Bom Jesus de Itabapoana (RJ) and São José do Calçado (ES). BNDES shall finance 70% of the R$83.8 million project, which will include 16 kilometers (km) of transmission line connected to the Escelsa network. The 20 MW Pirapetinga plant will be located between Campos dos Goytacazes (RJ) and Mimoso do Sul (ES). BNDES will finance 70% of the R$81.3 million project, which will include transmission lines connected to the Ampla network. Both projects are being developed by Rio PCH 1, a company of Neoenergia Group.
- R$ 471.5 million approved in November for 10 PCHs in SC and Minas Gerais (MG), operated by Empresa de Investimento em Energias Renováveis S.A (Ersa). Ersa is a publicly held corporation established in 2006 in order to exploit opportunities within the Brazilian power generation market. The PCHs at Aiuruoca, Arvoredo, Barra da Paciência, Cocais Grande, Corrente Grande, Ninho da Águia, Paiol, São Gonçalo, Varginha and Várzea Alegre cover three different river basins (Doce, Grande, Uruguai) and together will have installed capacity of 137 MW, enough power to serve around 1.4 million people. All ten already have signed long-term contracts to trade power. All ten were established as SPEs (Sociedade de Propósito Específico – Specific-Purpose Entity), which will be the loan contract beneficiary and in charge of implementing the project.
- R$ 226 million approved in December for two PCHs in São Paulo (SP), both SPEs belonging to the energy firm Alusa, part of the Alupar Group. The Paulista Lavrinhas de Energia S.A. plant, located on Paraíba do Sul river, in Lavrinhas, will receive R$ 111.2 million and the Paulista Queluz de Energia S.A. plant, located in the city of Queluz (São Paulo), R$ 114.6 million (the BNDES financing constitutes 72% of each project). Each will have 30 MW of generation capacity and associated transmission system. Both have long-term energy sale contracts with industrial consumers. Interestingly enough, as part of the loan, Alusa agreed to a series of BNDES recommendations on environmental, health and safety aspects of the projects.
Tags: Aiuruoca, Alupar, Alusa, Ampla, Arvoredo, Barra da Paciência, BNDES, Bom Jesus de Itabapoana, Brasil, Brazil, Campos dos Goytacazes, Chapecó River, Cocais Grande, Corrente Grande, energía renovable, environment, Ersa, Escela, Espírito Santo, Gomes Lourenço, Ipuaçu, Itabapoana River, Lavrinhas, meio ambiente, Mimoso do Sul, Minas Gerais, Neoenergia, Ninho da Águia, Paiol, Paraíba do Sul River, Paulista Lavrinhas de Energia, Paulista Queluz de Energia, PCH, Pedra do Garrafão, renewable energy, Rio de Janeiro, Rio Doce, Rio Grande, Rio Uruguai, Santa Catarina, São Domingos, São Gonçalo, São José do Calçado, SPEs, transmission lines, Varginha, Várzea Alegre
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