Brazil: CGTEE’s 350MW Candiota III Thermo Plant to Be Operational By 2010

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Researched by Industrial Info Resources (Sugar Land, Texas) -- CGTEE, a subsidiary of Brazilian power holding company Eletrobras, is currently carrying out the construction of phase C of the Presidente Medici Plant, located in the Municipality of Candiota, Rio Grande Do Sul. With an installed capacity of 350MW, this project is CGTEE’s main expansion project.

The State of Rio Grande do Sul has four plants. They are called Candiota I (126MW), Candiota II (320MW) and Sao Jeronimo (20MW), all belonging to CGTEE Companhia de Geracao Termica de Energia Electrica; and the Charqueadas Plant (72MW), which belongs to Tractebel Energia, a major private electricity producer in Brazil. Candiota I and II are also known as Presidente Medici A and B.

In 2004, CGTEE recovered independence to raise the funding necessary for the investment originally conceived by the CEEE in the early 80’s. The CGTEE and Eletrobras later signed a protocol of understanding with the Chinese conglomerate Citic Group and with the China development Bank for technical, financial and economic viability studies for the project.

Last April, CGTEE requested increased coal supply for the Candiota coal-burning thermoelectric plant. CGTEE asked mining company CRM (Companhia Riograndense De Mineracao) to double coal supply of 1.7 million tons per year for Candiota consumption.

The Candiota III Plant will start up in December 2010, and has already sold 294MW of its output in an official electricity auction. The project’s total investment is estimated to be $285 million in the plant, plus $20 million in the mine to expand its output.

The equipment has started arriving from China. The Chinese company Citic Group is supplying parts for the coal-fired plant. More equipment will arrive in Brazil by year-end.

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