According to various sources, including CNN Money and Challenges, the French company Suez sold for 3.3 billion Euros worth of electricity during auctions in Brazil.
The electricity will be generated by a dam that the company is currently building in collaboration with local companies. The project will be ready by 2012.
This project is due to answer in a sustainable way the growing energy demand in this country.
According to the official press release by Suez :
SUEZ Energy International has sold 256 MW average of power from its participation in the Estreito power plant at the power auctions held in Brazil on 16th October 2007.
The Estreito 1,087 MW hydro-electric power project is currently being constructed by SUEZ Energy International, leader of the consortium with 40.07%, in partnership with Companhia Vale do Rio Doce (30%), Alcoa (25.49%) and Camargo Correa (4.4%).
Electricity from hydro and thermal projects was offered to distributors at the auction in contracts starting from 2012. The partners of SUEZ in this project are auto-producers and will consume their output on their industrial sites in Brazil.
The Estreito concession was acquired by SUEZ Energy International and its partners in 2002. The plant is located on the Tocantins river, between the states of Tocantins and Maranhão in Brazil, downstream from the São Salvador 243 MW hydro project which SUEZ is also constructing; and Cana Brava, a 450 MW hydro plant owned by Tractebel Energia, SUEZ Energy International’s subsidiary in Brazil.
Mauricio Bähr, CEO of SUEZ Energy Brazil commented: “We began construction of Estreito in January 2007, and this Power Purchase Agreement will enable us to finalise the financial agreement with BNDES, completing the development of the most important hydro project under construction in Brazil today”.
Dirk Beeuwsaert, CEO of SUEZ Energy International, added: “The auctions in Brazil help address the growing demand for electricity in the country. Our successful participation and our decision to start constructing this new hydro plant demonstrates our continuing interest in the Brazilian market.
These auctions have enabled us to get long term contracts which provide a secured global cash flow and will ecome an interesting contributor to Tractebel Energia’s business.”
- Suez press release. (.pdf)
Further reading :
- Challenges : Suez vend pour 3,3 milliards d’euros d’électricité au Brésil ;
- CNN Money : Suez unit sells 3.3 bln eur worth of electricity in Brazil power auction.