Brazil’s parliament is discussing a bill that will mandate power distribution companies to purchase electricity from small hydropower plants – those with an installed capacity of up to 30 MW.

Distributors will be expected to invite hydropower producers to participate in public tenders every year and contract at least 5 per cent of the estimated annual increase in demand in the areas they supply.

Seenews, which quotes Brazilian daily Jornal da Energia, claims this initiative will help Brazil maintain a favourable environment for renewable energy.

In addition, it is hoped that the measure will boost the economy and generate new jobs.

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