Brazil's 219-Megawatt Cachoeira Caldeirão Hydro Project Receives Environmental Permit for A-5 Power Auction

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Reearched by Industrial Info Resources Latin America (Cordoba, Argentina)--The Environmental Department of the State of Amapá (SEMA) recently conferred a preliminary license (LP) to the 219-megawatt (MW) Cachoeira Caldeirão hydropower project on the Araguari River, which is going to be located seven miles west of Ferreira Gomes.

The LP attests to the project's environmental feasibility and is an unavoidable requirement in order to move on to the engineering phase. It is required for the project to be tendered at the next A-5 Energy Auction, at which the government will try to sell the plant's future power output.

A few days before the LP was granted, federal energy regulator ANEEL approved the detailed design of the Cachoeira Caldeirão project, based on joint studies that had been submitted by Centrais Elétricas do Norte de Brasil S.A. (Eletrobras Eletronorte) (Brasilia, Brazil), Construtora Norberto Odebrecht S.A. (Rio de Janeiro, Brazil) and Neoenergia (Rio de Janeiro, Brazil).

The A-5 Energy Auction is scheduled to be held on August 16, 2012. At this event, power purchasing agreements will be secured for energy coming from natural gas, biomass, wind, and hydro generation projects. Any contract with a distributor agreed upon during the auction will have a validity of 30 years if it is a hydro project, or 20 years if it comes from other sources. Startup of the projects must be completed by January 1, 2017.

Other major hydro projects that are expected to be tendered at the same occasion are Sinop (400 MW), São Manoel (700 MW), and Ribeiro Gonçalves (113 MW), provided they receive their LP's on time.

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