Brazil Raises Power-Rate Cap on Projects for Next Auction

Oct. 29 (Bloomberg) — Brazil increased a cap on
electricity rates for hydroelectric and thermal power projects
to be auctioned next month in a bid to lure investment.

Bidders at the Nov. 28 auction for hydroelectric projects
with as much as 50 megawatts of capacity will be allowed a
maximum rate of 164 reais ($67) a megawatt-hour, up from 158
reais originally proposed, the country’s electricity regulator,
known as Aneel, said by e-mail today. For thermal plants that
use biomass, coal or natural gas, the cap was raised to 209 from
reais 197 reais per megawatt-hour.

The auction, initially scheduled for Sept. 12, has been
postponed twice to give developers additional time to submit
proposals. Developers proposing about three gigawatts of
capacity have applied to participate.

The maximum rate for wind and solar projects has been set
at 137 reais a megawatt-hour.

To contact the reporter on this story:
Vanessa Dezem in Sao Paulo at
vdezem@bloomberg.net

To contact the editors responsible for this story:
Reed Landberg at
landberg@bloomberg.net
Carlos Caminada, Steven Frank

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