Only half of the hydroelectric plants that it had planned to auction licenses for were included in the latest auction, which took place on 20 December, according to Brazil’s electricity regulator Aneel.

This was because the Sao Manoel, Sinop, Ribeiro Goncalves and Cachoeira Caldeirao hydroelectric dams, with a combined capacity of 1432 MW, all failed to obtain environmental licenses in time to be included in the auction.

The four projects that were included were the 56 MW Estreito dam, the 63 MW Cachoeira dam, the 64 MW Castelhano dam and the 135 MW Sao Roque dam.

The Brazilian government licenses electricity generating  projects through its A-5 auction – in which companies have five years to bring projects online – and is part of its plan to add approximately 6000MW of new capacity each year to meet growing demand.

The latest auction originally attracted a large number of projects, with companies offering to sell over 24 000 MW of new generating capacity, including those hoping to build and operate hydroelectric dams, as well as projects to build wind and thermoelectric plants.

However, many projects were subsequently axed, including several thermoelectric projects when Petroleo Brasileiro SA confirmed it could not guarantee natural-gas supplies.

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